a. What is the payback period for each project?

b. What is NPV for each project?

c. Find the IRR for each project. Please write down the formula to solve this to get credit. a) 10.27% b) 12.73% c) 19.26% d) 18.26% e) 20%

d. What is one discount rate where I would be indifferent between A and B? Please write down the formula to solve this to get credit. a) 5% b) 6.59% c) 8.57% d) 14.79%

e. Which project should be accepted if A and B are mutually exclusive and the required rate of return is 5%? 15%? Why?

Cash flows for projects A and B are as follows, the required rate of return is 12%: Time 04 12 22 34 42 Project A -$2,000 $5004 $650 $9004 $1,2004 Project B42 -$2,3002 $300 $700 $950 $1,900 14