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Consider the following two mutually exclusive projects: Year Cash Flow ( A ) Cash Flow ( B ) 0 $ 2 3 0 , 0

Consider the following two mutually exclusive projects:
Year Cash Flow (A) Cash Flow (B)
0$ 230,069$ 16,383
125,2005,833
258,0008,887
350,00013,259
4422,0008,865
Whichever project you choose, if any, you require a 6 percent return on your investment.
a. What is the payback period for Project A?
b. What is the payback period for Project B?
c. What is the discounted payback period for Project A?
d. What is the discounted payback period for Project B?
e. What is the NPV for Project A?
f. What is the NPV for Project B ?
g. What is the IRR for Project A?
h. What is the IRR for Project B?
i. What is the profitability index for Project A?
j. What is the profitability index for Project B?

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