Consider the following two mutually exclusive projects:

Year	Cash Flow (A)		Cash Flow (B)
0	$	419,000	$	37,000
1		47,000		19,800
2		59,000		13,900
3		76,000		15,600
4		534,000		12,400

The required return on these investments is 11 percent.

a. What is the payback period for each project?

Payback period

Project A years ?

Project B years ?

What is the NPV for each project?

	Net present value
Project A	? $
Project B	? $

What is the IRR for each project?

Internal rate of return

Project A

? $

Project B

? $

What is the profitability index for each project?

	Profitability index
Project A	?
Project B	?