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Consider the following cash flows of two mutually exclusive projects for AZ-Motorcars. Assume the discount rate for AZ-Motorcars is 11 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 11 percent. |
| Year | AZM Mini-SUV | AZF Full-SUV | ||||
| 0 | $ | 545,000 | $ | 895,000 | ||
| 1 | 339,000 | 369,000 | ||||
| 2 | 218,000 | 458,000 | ||||
| 3 | 169,000 | 309,000 | ||||
| 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 | |
| AZF Full-SUV | |
| 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 period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places. (e.g., 32.16)) |
| IRR | |
| AZM Mini-SUV | % |
| AZF Full-SUV | % |
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