Question
Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $210,255 $15,497 1 26,700 5,035 2 55,000 8,600 3 53,000
Consider the following two mutually exclusive projects:
Year Cash Flow
(A) Cash Flow (B)
0 $210,255 $15,497
1 26,700 5,035
2 55,000 8,600
3 53,000 13,007
4 380,000 8,643
Whichever project you choose, if any, you require a 6 percent return on your investment.
What is the payback period for Project A?
What is the payback period for Project B?
What is the discounted payback period for Project A?
What is the discounted payback period for Project B?
What is the NPV for Project A?
What is the NPV for Project B?
What is the IRR for Project A?
What is the IRR for Project B?
What is the profitability index for Project A?
What is the profitability index for Project B?
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