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Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$ 240,490 -$ 15,880 1 26,100 5,565 2 50,000 8,581 56,000

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Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$ 240,490 -$ 15,880 1 26,100 5,565 2 50,000 8,581 56,000 13,144 4 404,000 8,486 Whichever project you choose, if any, you require a 6 percent return on your investment. ONM 3 a. What is the payback period for Project A? Payback period b. What is the payback period for Project B? Payback period c. What is the discounted payback period for Project A? Discounted payback period d. What is the discounted payback period for Project B? Discounted payback period e. What is the NPV for Project A? NPV f. What is the NPV for Project B? NPV g. What is the IRR for Project A? IRR h. What is the IRR for Project B? IRR i. What is the profitability index for Project A? Profitability index j. What is the profitability index for Project B? Profitability index

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