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Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $212,983 $15,384 1 25,500 4,811 2 57,000 8,092 3 52,000
| Consider the following two mutually exclusive projects: |
| Year | Cash Flow (A) | Cash Flow (B) |
| 0 | $212,983 | $15,384 |
| 1 | 25,500 | 4,811 |
| 2 | 57,000 | 8,092 |
| 3 | 52,000 | 13,854 |
| 4 | 420,000 | 9,616 |
| Whichever project you choose, if any, you require a 6 percent return on your investment. |
| a. What is the payback period for Project A? |
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| b. What is the payback period for Project B? |
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| c. What is the discounted payback period for Project A? |
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| d. What is the discounted payback period for Project B? |
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| e. What is the NPV for Project A? |
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| f. What is the NPV for Project B ? |
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| g. What is the IRR for Project A? |
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| h. What is the IRR for Project B? |
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| i. What is the profitability index for Project A? |
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| j. What is the profitability index for Project B? |
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Unlocking The Door To Real Estate Success Achieving Passive Income
Authors: Benjamin Stone
1st Edition
979-8856252278
