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Bitforth Co. is considering two projects, but can afford only one. They require a 15% return...

Bitforth Co. is considering two projects, but can afford only one. They require a 15% return on their investment. Show your work for each step. (15 marks) Year Project A cashflow Project B cashflow 0 -$350,000 -$50,000 1 45,000 24,000 2 65,000 22,000 3 65,000 19,500 4 440,000 14,600 Using the payback method, which project would you choose? Why? Using the NPV method, which project would you choose? Why? Using the IRR method, which project would you choose? Why? If you apply the profitability index, which project would you choose? Why? Which project should you choose? Why

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Home nert Page Layout Formulas Data Review View dd-Ins Cut E AutoSum Wrap Text в 1 프 . Ej-., Δ. : rーー 逻锂函Merge & Center. $, % , 弼,8 Conditional Format eCell Insert Delete Format Paste Sort &Find & 2 ClearFe Select Editing Format Painter Formatting, as Table w styles. ▼ ㆆ ▼ Clipboard NF323 NE Alignment Number NF NG NH NO NJ FOR B CCFAT NK NM NP FOR A PROJECTA PROJECT B CCFAT 309 310 311 312 313 314 315 316 317 318 319 ans 1 PAYBACK PERIOD 320 321 322 323 324 325 326 /4 トト MIRR NpV IRR REPLACEMENTS HPR GMAM EAC MACR LEASE RATIOCASHBUDGET acc BOND EPS EBIT C REPLACEMENT STats -NPV BETA LEVERED PV FACTOR at 15% PV OF CFAT FORA & B P*R (A) Q R(B) year 0 350000 45000 65000 65000 440000 50000 24000 22000 19500 14600 350000 -50000 305000 -26000 2400004000 175000 15500 265000 30100 1 -350000.00 -50000.00 0.8696 39130.43 20869.57 0.7561 49149.34 16635.16 0.6575 42738.56 12821.57 0.5718251571.438347.60 NPV-.-> 32589.76 8673.89 FORA 3CCFAT3/CFAT4 (ignore negative sign DECISION LOWER THE PAYBACK PERIOD, BETTER IT IS 3(175000/440000) 3.3977 YEARS SO SELECT PROJECT B FOR B 2 CCFAT2/CFAT3 2 (4000/19500) (ignore negative sign) 2.2051 YEARS erences: NI296 130% 10:13 10-01-2019File Home nert Page Layout Formulas Data Review View dd-Ins Cut E AutoSum Calibri ー E ゴWrap Text General aCopy в 1 프 . Ej-.

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