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Consider the following two mutually exclusive projects: Year Cash Flow (A) -$380,000 48,000 68,000 68,000 443,000 1 2 3 4 Cash Flow (B) -$ 59,000

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Consider the following two mutually exclusive projects: Year Cash Flow (A) -$380,000 48,000 68,000 68,000 443,000 1 2 3 4 Cash Flow (B) -$ 59,000 30,000 25,000 22,500 17,600 WN Whichever project you choose, if any, you require a 15% return on your investment a-1. What is the payback period for each project? (Round the final answers to 2 decimal places.) Payback period Project A years Project B years a-2. If you apply the payback criterion, which investment will you choose? Project A O Project B 1-1. What is the discounted payback period for each project? (Do not round intermediate calculations. Round the final answers to 2 decimal places.) Discounted Payback Project A 100 years Project B Period years b-2. If you apply the discounted payback criterion, which investment will you choose? Project A O Project B c-1. What is the NPV for each project? (Do not round Intermediate calculations. Round the final answers to 2 decimal places. Omits sign in your response.) NPV $ 1154,60 Project A Project B c.2. If you apply the NPV criterion, which investment will you choose? O Project A Project B d-1. What is the IRR for each project? (Round the final answers to 2 decimal places.) IRR Project A Project B d-2. If you apply the IRR criterion, which investment will you choose? Project A O Project e-1. What is the profitability index for each project? (Do not round Intermediate calculation. Round the final answers to 3 decimal places.) Profitability Index 100 Project A Project B Profitability Index 1.03 Project A Project B e-2. If you apply the profitability index criterion, which investment will you choose? Project A O Project B f. Based on your answers in (a) through (e), which project will you finally choose? Project A Project B Prey

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