Caledonia is considering two additional mutually exclusiveprojects. The cash flo
ID: 2661909 • Letter: C
Question
Caledonia is considering two additional mutually exclusiveprojects. The cash flows associated with these projects are asfollows: YEAR PROJECT A PROJECT B 0 -$100,000 -$100,000 1 32,000 0 2 32,000 0 3 32,000 0 4 32,000 0 5 32,000 0 The required rate of return on these projects is 11percent. a. What is each projects payback period? b.what is each projects net present value? c. What is each project's internal rate of return? d. what has caused the ranking conflict? e. which project should be accepted?Why? Caledonia is considering two additional mutually exclusiveprojects. The cash flows associated with these projects are asfollows: YEAR PROJECT A PROJECT B 0 -$100,000 -$100,000 1 32,000 0 2 32,000 0 3 32,000 0 4 32,000 0 5 32,000 0 The required rate of return on these projects is 11percent. a. What is each projects payback period? b.what is each projects net present value? c. What is each project's internal rate of return? d. what has caused the ranking conflict? e. which project should be accepted?Why?Explanation / Answer
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