a 2 If you apply the payback criterion, which investment will you choose Project A Project B b 1 What is the discounted payback period for each project (Do not round intermediate calculations and round your answers to 2 decimal places, e g , 32 16 ) b 2 If you apply the discounted payback criterion, which investment will you choose Project A Project B c 1 What is the NPV for each project (Do not round intermediate calculations and round your answers to 2 decimal places, e g , 32 16 ) 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 (Do not round intermediate calculations Enter your answers as a percent rounded to 2 decimal places, e g , 32 16 ) d 2 If you apply the IRR criterion, which investment will you choose Project A Project B e 1 What is the profitability index for each project (Do not round intermediate calculations and round your answers to 3 decimal places, e g , 32 161 ) e 2 If you apply the profitability index criterion, which investment will you choose Project A Project B f Based on your answers in (a) through (e), which project will you finally choose Problem 9 17 Comparing Investment Criteria (LO1, 2, 3, 5, 7 Consider the following two mutually exclusive projects Year o NM 1 Cash Flow (A) 347,000 48,000 68,000 68,000 443,000 Cash Flow (B) 249,500 24,300 22,300 19,800 14,900 Whichever project you choose, if any, you require a return of 15 percent on your investment a 1 What is the payback period for each project (Do not round intermediate calculations and round your answers to 2 decimal places, e g , 32 16 ) years Project A Project B years

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a-2 If you apply the payback criterion, which investment will you choose? Project A Project B b-1 What is the discounted payback period for each

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a-2	If you apply the payback criterion, which investment will you choose?

	Project A Project B

b-1

What is the discounted payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

b-2	If you apply the discounted payback criterion, which investment will you choose?

	Project A Project B

c-1

What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

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? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

d-2	If you apply the IRR criterion, which investment will you choose?

	Project A Project B

e-1

What is the profitability index for each project? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.)

e-2	If you apply the profitability index criterion, which investment will you choose?

	Project A Project B


f.	Based on your answers in (a) through (e), which project will you finally choose?

Problem 9-17 Comparing Investment Criteria (LO1, 2, 3, 5, 7] Consider the following two mutually exclusive projects: Year o-NM 1 Cash Flow (A) 347,000 48,000 68,000 68,000 443,000 Cash Flow (B) 249,500 24,300 22,300 19,800 14,900 Whichever project you choose, if any, you require a return of 15 percent on your investment a-1 What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) years Project A Project B years