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Consider the following cash flows of two mutually exclusive projects for AZ-Motorcars. Assume the discount rate for both projects is 11 percent. Year AZM Mini-SUV
Consider the following cash flows of two mutually exclusive projects for AZ-Motorcars. Assume the discount rate for both projects is 11 percent. |
Year | AZM Mini-SUV | AZF Full-SUV | ||||
0 | $ | 520,000 | $ | 870,000 | ||
1 | 334,000 | 364,000 | ||||
2 | 208,000 | 448,000 | ||||
3 | 164,000 | 304,000 | ||||
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.) |
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.) |
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