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2) YEAR o 1 2 3 4 Project A -$2000 500 600 700 800 Project B -$2000 950 850 400 300 A) Calculate the payback
2) YEAR o 1 2 3 4 Project A -$2000 500 600 700 800 Project B -$2000 950 850 400 300 A) Calculate the payback period for projects A & B. B) If the discount rate is 12%, what is the NPV of project A? For B? C) Calculate the IRR for projects A & B. D) If A and B are mutually exclusive and the required rate of return is 5%, which should be accepted? E) If A and B are mutually exclusive and the required rate of return is 12%, which should be accepted? F) At what discount rate will be indifferent between A & B? (i.e. Crossover Rate)
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