C

$12$

$5$

Consider the following cash flows of two mutually exclusive projects for A$-$Z Motorcars. Assume the discount rate for both projects is percent

Year

$0$

$1$

$2$

$3$

AZM Mini$-$SUV

AZF Full$-$SUV

$-5475,000$

$-$$ $825,000$

$325,000$

$355,000$

$190,000$

$430,000295,000$

$155,000$

a$.$ What is the payback period for each project?

Note: Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

b$.$ What is the NPV for each project?

Note: Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

c$.$ What is the IRR for each project?

Note: Do not round intermediate calculations and enter your answers as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

a$.$ AZM payback period

AZF payback period

$3$:$46$ years

Book

erences

b$.$ AZM NPV

AZF NPV

c$.$ AZM IRR

$23\mathrm{.}00\%$

AZF IRR

$2\mathrm{.}00$ years

$15\mathrm{.}00\%$