a)
To determine:
Introduction: Net present value refers to the difference between the present value of
b)
To determine:
Introduction: Internal rate of return refers to the minimum rate or hurdle rate at which NPV is zero. Net
c)
To determine: Discounted Payback period for project A and project B and selection of the project if they are independent and mutually exclusive.
Introduction: Discounted payback period refers to the payback period which accounts for discounted cash flows. It overcomes the drawback of traditional payback period method where present value factor is ignored.
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