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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)
0$ 440,000$ 104,000
1138,00060,000
283,00040,000
383,00037,500
4469,00032,600
Whichever project you choose, if any, you require a 15% return on your investment.
a-1. What is the payback period for each project? (Round the final answers to 2 decimal places.)
Payback Period
Project A years
Project B years
a-2. If you apply the payback criterion, which investment will you choose?
multiple choice 1
Project A
Project B
b-1. What is the discounted payback period for each project? (Do not round intermediate calculations. Round the final answers to 2 decimal places.)
Discounted Payback Period
Project A years
Project B years
b-2. If you apply the discounted payback criterion, which investment will you choose?
multiple choice 2
Project A
Project B
c-1. What is the NPV for each project? (Do not round intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.)
NPV
Project A $
Project B $
c-2. If you apply the NPV criterion, which investment will you choose?
multiple choice 3
Project A
Project B
e-1. What is the profitability index for each project? (Do not round intermediate calculation. Round the final answers to 3 decimal places.)
Profitability Index
Project A
Project B
e-2. If you apply the profitability index criterion, which investment will you choose?
multiple choice 4
Project A
Project B
f. Based on your answers in (a) through (e), which project will you finally choose?
multiple choice 5
Project A
Project B
can you provide whole answer

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