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Consider the following two mutually exclusive projects: Year Cash Flow ( A ) Cash Flow ( B ) 0 $ 3 4 3 , 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 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 intermediate calculations and enter
your answers as a percent rounded to decimal places, eg
d If you apply the IRR criterlon, which Investment will you choose?
Project A
Project B
e What is the profitability index for each project? Do not round intermediate
calculations and round your answers to decimal places, eg
e If you apply the profitability Index criterlon, which Investment will you choose?
Project A
Project B
f Based on your answers In a through e which project will you finally choose?
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