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Consider the following two mutually exclusive projects: Year 0 1 2 3 4. Cash Flow (A) Cash Flow (B) -$419,000 -$37,000 47,000 19,800 59,000 13,900

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Consider the following two mutually exclusive projects: Year 0 1 2 3 4. Cash Flow (A) Cash Flow (B) -$419,000 -$37,000 47,000 19,800 59,000 13,900 76,000 15,600 534,000 12,400 The required return on these investments is 11 percent. 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.) c. What is the IRR for each project? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) d. What is the profitability index for each project? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) e. Based on your answers in (a) through (d), which project will you finally choose? years years a. Project A Project B b. Project A Project B c. Project A Project B d. Project A Project B % % e

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