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Consider the following two mutually exclusive projects: table [ [ Year , Cash Flow ( A ) , Cash,Flow ( B ) ] ,
Consider the following two mutually exclusive projects:
tableYearCash Flow ACash,Flow B$$
The required return on these investments is percent.
a What is the payback period for each project?
Note: Do not round intermediate calculations and round your answers to decimal places, eg
b What is the NPV for each project?
Note: Do not round intermediate calculations and round your answers to decimal places, eg
c What is the IRR for each project?
Note: Do not round intermediate calculations and enter your answers as a percent rounded to decimal places, eg
d What is the profitability index for each project?
Note: Do not round intermediate calculations and round your answers to decimal places, eg
e Based on your answers in a through d which project will you finally choose?
tablea Project AyearsProject Byearsb Project AProject Bc Project A
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