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Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $219,480 $15,584 1 27,800 5,592 2 55,000 8,100 3 58,000
| Consider the following two mutually exclusive projects: |
| Year | Cash Flow (A) | Cash Flow (B) |
| 0 | $219,480 | $15,584 |
| 1 | 27,800 | 5,592 |
| 2 | 55,000 | 8,100 |
| 3 | 58,000 | 13,887 |
| 4 | 430,000 | 8,206 |
| Whichever project you choose, if any, you require a 6 percent return on your investment. |
| a. What is the payback period for Project A? |
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| b. What is the payback period for Project B? |
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| c. What is the discounted payback period for Project A? |
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| d. What is the discounted payback period for Project B? |
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| e. What is the NPV for Project A? |
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| f. What is the NPV for Project B ? |
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| g. What is the IRR for Project A? |
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| h. What is the IRR for Project B? |
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| i. What is the profitability index for Project A? |
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| j. What is the profitability index for Project B? |
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Taxation Of Individuals And Business Entities 2015
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
6th Edition
9780077862367
