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4. Consider the following two mutually exclusive projects: 10 points Year 0 1 2 3 4 Cash Flow (A) -$440,000 84,000 104,000 74,000 449,000 Cash

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4. Consider the following two mutually exclusive projects: 10 points Year 0 1 2 3 4 Cash Flow (A) -$440,000 84,000 104,000 74,000 449,000 Cash Flow (B) -$ 77,000 33,000 31,000 28,500 23,600 eBook Print References Whichever project you choose, if any, you require a 15% return on your investment. a-1. What is the payback period for each project? (Round the final answers to 2 decimal places.) Payback Period Project a years Projects years a-2. If you apply the payback criterion, which investment will you choose? O Project A Project B a-2. If you apply the payback criterion, which investment will you choose? O Project A O Project B b-1. What is the discounted payback period for each project? (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Discounted Payback Deriod Project years Project years b-2. If you apply the discounted payback criterion, which investment will you choose? O Project A Project B c-1. What is the NPV for each project? (Do not round Intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.) c-1. What is the NPV for each project? (Do not round intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.) NOV Project Projects c-2. If you apply the NPV criterion, which investment will you choose? Project A Project B d-1. What is the IRR for each project? (Round the final answers to 2 decimal places.) TRR Project A Projects d-2. If you apply the IRR criterion, which investment will you choose? Driert d-2. If you apply the IRR criterion, which investment will you choose? Project A O Project B e-1. What is the profitability index for each project? (Do not round intermediate calculation. Round the final answers to 3 decimal places.) Profitability Index Project Project B e-2. If you apply the profitability index cterion, which investment will you choose? Project A O Project B f. Based on your answers in (a) through (e), which project will you finally choose? e-2. If you apply the profitability index criterion, which investment will you choose? O Project A Project B f. Based on your answers in (a) through (e), which project will you finally choose? O Project A O Project B 209 10 9 A

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