Consider the following two mutually exclusive projects Cash Flow (A) Cash Flow (B) Year -$42,500 $430,000 41,500 64,500 81,500 545,000 20,900 12,800 21,100 17,900 The required return on these investments is 10 percent. Required: (a) What is the payback period for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Payback period Project A Project B years years What is the NPV for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) (b) Net present value Project A Project B 15.00 points For the given cash flows, suppose the firm uses the NPV decision rule. Cash Flow ear 154,000 62,000 77,000 61,000 Requirement 1: At a required return of 8 percent, what is the NPV of the project? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) NPV Requirement 2: At a required return of 20 percent, what is the NPV of the project? (Do not round intermediate calculations. A negative amount should be indicated by a minus sign. Round your answer to 2 decimal places (e.g., 32.16).) NPV Hints References eBook & Resources