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# A&B Enterprises is trying to select the best investment from among four alternatives. Each alternative requires an initial outlay of \$100,000. Their...

11. A&B Enterprises is trying to select the best investment from among four alternatives. Each alternative requires an initial outlay of \$100,000. Their cash flows are as follows:
Project A
Year 1: \$10,000
Year 2: \$20,000
Year 3: \$30,000
Year 4: \$40,000
Year 5: \$50,000
Project B
Year 1: \$50,000
Year 2: \$40,000
Year 3: \$30,000
Year 4: \$0
Year 5: \$0
Project C
Year 1: \$25,000
Year 2: \$25,000
Year 3: \$25,000
Year 4: \$25,000
Year 5: \$25,000
Project D
Year 1: \$0
Year 2: \$0
Year 3: \$45,000
Year 4: \$55,000
Year 5: \$60,000
Evaluate and rank each of the four projects based on (a) payback period, (b) net present value (use a 10% discount rate), and (c) internal rate of return. You will have to use Excel or a financial calculator to determine the IRR. You are welcome to use Excel or a financial calculator to determine the NPV.

11. A&B Enterprises is trying to select the best investment from among
four alternatives. Each alternative requires an initial outlay of
\$100,000. Their cash flows are as follows:
Project A
Year 1: \$10,000
Year 2: \$20,000
Year 3: \$30,000
Year 4: \$40,000
Year 5: \$50,000
Project B
Year 1: \$50,000
Year 2: \$40,000
Year 3: \$30,000
Year 4: \$0
Year 5: \$0
Project C
Year 1: \$25,000
Year 2: \$25,000
Year 3: \$25,000
Year 4: \$25,000
Year 5: \$25,000
Project D
Year 1: \$0
Year 2: \$0
Year 3: \$45,000
Year 4: \$55,000
Year 5: \$60,000
Evaluate and rank each of the four projects based on (a) payback period,
(b) net present value (use a 10% discount rate), and (c) internal rate
of return. You will have to use Excel or a financial calculator to
determine the IRR. You are welcome to use Excel or a financial
calculator to determine the NPV.

11. A&amp;B Enterprises is trying to select the best investment from among four alternatives. Each alternative requires an initial outlay of
\$100,000. Their cash flows are as follows:
Project A...

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