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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
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The required return on these investments is percent.
a What is the payback period for each project? Do not round intermediate calculations and round your answers to decimal places, eg
b What is the NPV for each project? Do not round intermediate calculations and round your answers to decimal places, eg
c What is the IRR for each project? Do not round intermediate calculations and enter your answers as a percent rounded to decimal places, eg
d What is the profitability index for each project? Do not round intermediate calculations and round your answers to decimal places, eg
e Based on your answers in a through d which project will you finally choose?
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