What would be the decision of selection of project


Problem

1. Calculate the (a) NPV. (b) IRR. (c) PVI. (d) Payback period. (e) Discounted payback period for projects R and S.

2. Calculate the crossover rate (between projects R and S) based on the cash flow data mentioned above. Show the range of required rates for which either project-R or project-S would be preferred.

3. Based on your findings in requirements 1 and 2 above, what would be the decision of selection of project (when the required rate of return is 10.96 percent)?

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Financial Management: What would be the decision of selection of project
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