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Britney Javelin Company is considering two investments, both of which cost $15,000. The cash flows are as follows: Use Appendix B and Appendix D. Year

Britney Javelin Company is considering two investments, both of which cost $15,000. The cash flows are as follows: Use Appendix B and Appendix D.

Year Project A Project B
1 $8,100 $6,750
2 5,400 4,050
3 4,050 10,800

a. Calculate the payback period for project A and project B. (Round the final answers to 2 decimal places.)

Payback period
Project A years
Project B years

b-1. Calculate the NPV for project A and project B. Assume a cost of capital of 7 percent. (Round "PV Factor" to 3 decimal places. Round the intermediate and final answers to the nearest whole dollar.)

Net present value
Project A $
Project B $

b-2. Which of the two projects should be chosen based on the NPV method?

multiple choice 1

Project A

Project B

Both

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