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Consider the following two mutually exclusive projects: Year Cash Flow ( A ) Cash Flow ( B ) 0 $ 4 4 0 , 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 on your investment.
a What is the payback period for each project? Round the final answers to decimal places.
Payback Period
Project A years
Project B years
a If you apply the payback criterion, which investment will you choose?
multiple choice
Project A
Project B
b What is the discounted payback period for each project? Do not round intermediate calculations. Round the final answers to decimal places.
Discounted Payback Period
Project A years
Project B years
b If you apply the discounted payback criterion, which investment will you choose?
multiple choice
Project A
Project B
c What is the NPV for each project? Do not round intermediate calculations. Round the final answers to decimal places. Omit $ sign in your response.
NPV
Project A $
Project B $
c If you apply the NPV criterion, which investment will you choose?
multiple choice
Project A
Project B
e What is the profitability index for each project? Do not round intermediate calculation. Round the final answers to decimal places.
Profitability Index
Project A
Project B
e If you apply the profitability index criterion, which investment will you choose?
multiple choice
Project A
Project B
f Based on your answers in a through e which project will you finally choose?
multiple choice
Project A
Project B
can you provide whole answer
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