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Consider the following two mutually exclusive projects: Year 0 , 1 , 2 , 3 , 4 . Cash Flow ( A ) : -

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

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