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Consider the following two mutually exclusive projects Year Cash FloW (A) Cash Flow (B) -$365,000 38,000 47,000 62,000 455,000 -$40,000 20,300 15,200 14,100 11,200 2
Consider the following two mutually exclusive projects Year Cash FloW (A) Cash Flow (B) -$365,000 38,000 47,000 62,000 455,000 -$40,000 20,300 15,200 14,100 11,200 2 4 The required return on these investments is 13 percent. Required (a) What is the payback period for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Payback period Project A Project B years years (b) What is the NPV for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g.,32.16).) Net present value Project A Project B (c) What is the IRR for each project? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Internal rate ofreturn Project A Project B (d) What is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 3 decimal places (e.g., 32.161).) Profitability index Project A Project B (e) Based on your answers in (a) through (d), which project will you finally choose? Click to select) V
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