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Compute the internal rate of return for the cash flows of the following two projects. (Do not round intermediate calculations and enter your answers as

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Compute the internal rate of return for the cash flows of the following two projects. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Year Project A Project B 0 $12,800 $10,400 1 5,000 2,700 2 5,800 7,700 3 4,600 4,200 Project A Project B % de de % Novell, Inc., has the following mutually exclusive projects. Year Project A Project B -$31,000 0 $34,000 1 17,500 18,500 2 14,000 12,500 3 4,000 14,000 a-1. Calculate the payback period for each project. (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) Project A years Project B years a-2. If the company's payback period is two years, which, if either, of these projects should be chosen? Project A Project B Both projects Neither project b-1. What is the NPV for each project if the appropriate discount rate is 16 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Chapter 5 Graded HW 2 10 p 2000-04 c rences Compute the internal rate of return for the cash flows of the following two projects (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g. 32.16) Year Project A Project B 0 12.800 10,400 1 5,000 2700 7300 2 5,800 3 4,600 4,200 Project A Prand Help Save & C Suppose the following two independent investment opportunities are available to Fitz, Inc. The appropriate discount rate is 10 percent. Year Project Alpha Project Beta -$2,900 -$4,500 1,500 950 1,400 2,900 1,050 3,200 a. Compute the profitability index for each of the two projects. (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) Profitability Index Project Alpha Project Beta b. Which project(s), if either, should the company accept based on the profitability index rule? Project Alpha O Both projects Project Beta Neither project 0123

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