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Tri-Star, Inc has the following mutually exclusive projects: Project A: Year 0; -14,900 Year 1; 9,400...

Tri-Star, Inc has the following mutually exclusive projects:

Project A: Year 0; -14,900 Year 1; 9,400 Year 2; 8,000 Year 3; 2,100

Project B Year 0; -10,200 Year 1; 4,900 Year 2; 4,400; Year 3; 6,800

1.  Calculate the payback period for each project. (Round to 2 decimal places)

2. If the appropriate discount rate is 13 percent, what is the NPV for each project? (Round to 2 decimal places)

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Answer #1

Commulative cash flows : Project Year - 1 Year-2 Year-3 9,400 17400 1950o BT yao 4900 AHOO 9 300 611810164 16,100 Pay back peAnswer Project 2. Analysis of Tri-Star Inc . A Present value of Cash outflow (Pvco) 14900 Present value of Cash Inflow (Puct)

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