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Consider the following two mutually exclusive projects: Year Cash Flow ( A ) Cash Flow ( B ) 0 $ 4 2 7 , 0

Consider the following two mutually exclusive projects:
Year Cash Flow (A) Cash Flow (B)
0$427,000$41,000
143,00020,600
263,00013,100
380,00019,600
4542,00016,400
The required return on these investments is 13 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 choose?

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