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Consider the following two mutually exclusive projects Cash Flow (A) Cash Flow (B) $36,500 19,700 14,000 15,100 11,900 Year $418,000 47,500 58,500 75,500 533,000 The
Consider the following two mutually exclusive projects Cash Flow (A) Cash Flow (B) $36,500 19,700 14,000 15,100 11,900 Year $418,000 47,500 58,500 75,500 533,000 The required return on these investments is 14 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)-) Project A Project B years (b) What is the NPV for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 3216).) Net value Project A Project B (c) What is the IRR for each project? (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (eg, 32 16)) Internal rate of return Project A Project B (d) What is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 3 decimal places (e.g, 32 161).) ndex Project A Project B (e) Based on your answers in (a) through (d). which project wil you finally choose
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