Consider the following two mutually exclusive projects:

Year	Cash Flow (A)	Cash Flow (B)
0	-$360,000	-$45,000
1	35,000	23,000
2	55,000	21,000
3	55,000	18,500
4	430,000	13,600

Whichever project you choose, if any, you require a 14 percent return on your investment.

a)

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.)

Payback Period

Project A	_____ years
Project B	_____years

b)

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.)

Discounted Payback Period

Project A	_____years
Project B	_____years

c)

What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

NPV

Project A	$
Project B	$

d)

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.)

IRR

Project A	___%
Project B	___%

e)

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.)

Profitability Index

Project A
Project B