Question
Consider the following cash flows of two mutually exclusive projects for AZ-Motorcars. Assume the discount rate for AZ-Motorcars is 9 percent. Year AZM Mini-SUV AZF
Consider the following cash flows of two mutually exclusive projects for AZ-Motorcars. Assume the discount rate for AZ-Motorcars is 9 percent.
Year AZM Mini-SUV AZF Full-SUV
0 $ 535,000 $ 885,000
1 337,000 367,000
2 214,000 454,000
3 167,000 307,000
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).)
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 $
c. 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).)
IRR
AZM Mini-SUV ____%
AZF Full-SUV _____%
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