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Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $335,008 $15,743 1 28,200 5,321 2 53,000 8,353 3 53,000
Consider the following two mutually exclusive projects: |
Year | Cash Flow (A) | Cash Flow (B) |
0 | $335,008 | $15,743 |
1 | 28,200 | 5,321 |
2 | 53,000 | 8,353 |
3 | 53,000 | 13,945 |
4 | 412,000 | 8,958 |
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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