I need help with a managerial finance exam


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Dec 12th, 2015

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Payback period A 2.3 Years  B 2.8 Years

NPV A + 63533.76 B -6270.38

PI  A 1.33  B 0.98

AAR A 9.8% B 7.3%

DECISION

Accept Project A because it has shorter payback period, has positive NPV, has higher ARR and its PI is greater than 1


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Dec 12th, 2015

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