Question
Consider the following two mutually exclusive projects: Year Cash Flow A Cash Flow B 0 -170000 -18000 1 10000 10000 2 25000 6000 3 25000
Consider the following two mutually exclusive projects:
| Year | Cash Flow A | Cash Flow B |
| 0 | -170000 | -18000 |
| 1 | 10000 | 10000 |
| 2 | 25000 | 6000 |
| 3 | 25000 | 10000 |
| 4 | 380000 | 8000 |
Whichever project you choose,if any, you require a 15 percent return on your investment? If you apply the payback criterion, which investment will you choose? If you apply the NPV criterion, which investment will you choose? If you apply the IRR criterion, which investment will you choose? If you apply the profitability index criterion, which investment will you choose? Please show all steps. Don't round off until you get to the end.
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Financial Management For Nonprofit Organizations Policies And Practices
Authors: Jo Ann Hankin, John Zietlow, Alan Seidner, Tim O'Brien
3rd Edition
1119382564, 9781119382560
