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Consider the following two mutually exclusive projects: Year Cash Flow ( A ) Cash Flow ( B ) 0 $ 4 2 4 , 0

Consider the following two mutually exclusive projects:
Year Cash Flow (A) Cash Flow (B)
0$424,000$39,500
144,50020,300
261,50013,400
378,50018,100
4539,00014,900
The required return on these investments is 11 percent.
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.)
b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g.,32.16.)
c. What is the IRR for each project? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g.,32.16.)
d. 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.)
e. Based on your answers in (a) through (d), which project will you finally cho

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