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Consider the following two mutually exclusive projects: Year Cash Flow ( A ) Cash Flow ( B ) 0 $ 3 5 4 , 0
Consider the following two mutually exclusive projects:
Year Cash Flow A Cash Flow B
$ $
Whichever project you choose, if any, you require a return of percent on your investment.c What is the NPV for each project? Do not round Intermedlate calculations and
round your answers to decimal places, eg
c If you apply the NPV criterlon, which Investment will you choose?
Project A
Project B
d What is the IRR for each project? Do not round Intermedlate calculations and enter
your answers as a percent rounded to decimal places, eg
d If you apply the IRR criterion, which Investment will you choose?
Project A
Project B
e What is the profitability Index for each project? Do not round Intermedlate
calculations and round your answers to decimal places, eg
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