9%. The payback period of the project is

Year

Cash

Flow

2

3

-35,000

8.000

5.000

9,500

7,000

6.500

a.

b.

C.

d

3.37

4.21

4.50

e.

4.85

5.21

Use the following information to answer 37-40.

Assume a cost of capital of 12%.

Year

0

Project A

-$55.00

Project B

-$38.00

$13.00

$20.00

2

$20.00

$15.00

37. What is the NPV of Project A?

a. $12.29

b. $41.98

C.

$25.14

d. $18.14

e.

$30.76

38. What is the IRR of Project B?

a.

11.00%

b. 12.33%

C.

14.01%

d.

15.57%

e.

25.65%

39. What is the annual equivalent series (EAS) for Project A?

a.

$1.63

b.

$4.91

$5.55

d.

$3.41

e

$8.96

Use the following information to answer 37-40.

Assume a cost of capital of 12%.

Year

0

Project A

-$55.00

Project B

-$38.00

$13.00

$20.00

2

$20.00

$15.00

37. What is the NPV of Project A?

a. $12.29

b. $41.98

C.

$25.14

d. $18.14

e.

$30.76

38. What is the IRR of Project B?

a.

11.00%

b. 12.33%

C.

14.01%

d.

15.57%

e.

25.65%

39. What is the annual equivalent series (EAS) for Project A?

a.

$1.63

b.

$4.91

$5.55

d.

$3.41

e

$8.96

$27.00

$17.00

$18.00

$10.00

$16.00