Consider the following cash flows of two mutually exclusive projects for AZ-Motorcars. Assume the discount rate for AZ-Motorcars is 10 percent.

Year

AZM Mini-SUV

AZF Full-SUV

0

$

490,000

$

840,000

1

328,000

358,000

2

196,000

436,000

3

158,000

298,000

a.

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).)

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).)

	Payback period
AZM Mini-SUV	years
AZF Full-SUV	years

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

	NPV
AZM Mini-SUV	$
AZF Full-SUV	$