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Consider the following two mutually exclusive projects Year Cash Flow (A) Cash Flow (B) $342,000 $50,500 53,000 24,800 73,000 22.800 73,000 20,300 s 448,000
Consider the following two mutually exclusive projects Year Cash Flow (A) Cash Flow (B) $342,000 $50,500 53,000 24,800 73,000 22.800 73,000 20,300 s 448,000 15,400 Whichever project you choose, if any, you require a return of 14 percent on your investment. e-1 What is the payback period for each project? (Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Project A Project B years years e-2If you apply the payback criterion, which investment will you choose? Project A 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 Project B years years b-2If you apply the discounted payback criterion, which investment will you choose? O Project A Project B c-1 What is the NPV for each project? (Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Project A Project B c-21f you apply the NPV criterion, which investment will you choose? O Project A O Project B 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., 32.16.) Project A Project B % % d-2if you apply the IRR criterion, which investment will you choose? Project A Project B e-1 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) Project A Project B e-2 if you apply the profitability index criterion, which investment will you choose? Project A Project 6 . Based on your answers in (a) through (el, which project will you finally choose?
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