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Answer

Capital Budgeting

$7.99


Problem 1. Calculating Payback Period and NPV: Porter, Incorporated has two exclusive projects, listed in the table below. Use the NPV rule to rank these two projects. If the appropriate discount rate is 13 percent, which project should be chosen? Problem 1. Calculating Payback Period and NPV Year Project A Project B 0 -$12,700. -$9,400. 1 $7,000. $4,800. 2 $5,500. $3,750. 3 $2,500. $3,400.