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Consider the following two mutually exclusive projects: Year 0 Cash Flow (A) 352,000 43,000 63.000 63.000 438.000 Cash Flow (B) 49.000 23.800 21.800 19.300 14.400
Consider the following two mutually exclusive projects: Year 0 Cash Flow (A) 352,000 43,000 63.000 63.000 438.000 Cash Flow (B) 49.000 23.800 21.800 19.300 14.400 Whichever project you choose, if any, you require a 15 percent return on your investment. a-1 What is the payback period for each project? (Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.10.) Project A Project B Payback period years years a-2 If you apply the payback criterion, which investment will you choose? O Project A O Project B b-1 What is the discounted payback period for each project? (Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Project A Discounted payback period years years B Project B years b-21f you apply the discounted payback criterion, which investment will you choose! O Project A O Project -1 What the NPV for each project! Do not round Intermediate calculations and round your answers to 2 decimal places, eg. 32.16.) Project A Projects c-2 you apply the NPV criterion, which investment will you choose? O Project A O Project d-1 What is the IRR for each project? (Do not round Intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 3216.) Project A Project B d-24 you apply the IRR criterion, which Investment will you choose? O Project A O Project B -1 What is the profitability Index for each project? (Do not round Intermediate calculations and round your answers to 3 decimal places, e.q.32.161) Profitability Project A Project e-24you apply the profitability index criterion, which investment will you choose? Project A O Project through (e), which project will you finally choose! 2. Based on your answers in Cick to select
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