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Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $259,719 $15,637 1 29,700 5,130 2 60,000 8,117 3 54,000
Consider the following two mutually exclusive projects: |
Year | Cash Flow (A) | Cash Flow (B) |
0 | $259,719 | $15,637 |
1 | 29,700 | 5,130 |
2 | 60,000 | 8,117 |
3 | 54,000 | 13,252 |
4 | 382,000 | 9,483 |
Whichever project you choose, if any, you require a 6 percent return on your investment. |
Required: |
(e) | What is the NPV for Project A? |
(Click to select)$178,099.82$169,618.87$161,137.93$164,530.31$174,707.44 |
(f) | What is the NPV for Project B ? |
(Click to select)$15,818.02$14,612.84$15,516.73$15,064.78$14,311.54 |
(g) | What is the IRR for Project A? |
(Click to select)23%21.85%24.15%22.31%23.69% |
(h) | What is the IRR for Project B? |
(Click to select)39.9%38%36.86%36.1%39.14% |
(i) | What is the profitability index for Project A? |
(Click to select)1.7031.6531.7361.571.603 |
(j) | What is the profitability index for Project B? |
(Click to select)1.9632.0622.0221.9051.865 |
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