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LaVerne’s Pie Stand is evaluating three independent projects and it is your job to decide which,...

LaVerne’s Pie Stand is evaluating three independent projects and it is your job to decide which, if any, to accept. Using the discounted payback period and NPV methods of analysis, please come to an accept/reject decision for all projects and explain your reasoning. The company uses a 6% discount rate.

Projects

Year 0

1

2

3

4

5

6

A

-$20,000

$5,000

$2,500

$2,500

$2,500

$2,500

$0

B

-$10,000

$1,000

$1,000

$2,500

$3,000

$5,000

$500

C

-$3,000

$500

$500

$500

$500

$500

$1,500
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