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Consider the following cash flows of two mutually exclusive projects for A-Z Motorcars. Assume the discount rate for both projects is 10 percent. Year
Consider the following cash flows of two mutually exclusive projects for A-Z Motorcars. Assume the discount rate for both projects is 10 percent. Year AZM Mini-SUV AZF Full-SUV 0 -$ 515,000 -$ 865,000 1 333,000 363,000 2 206,000 446,000 3 163,000 303,000 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., 32.16. b. What is the NPV for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. 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., 32.16. a. AZM payback period AZF payback period b. AZM NPV AZF NPV c. AZM IRR AZF IRR years years % %
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