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Consider the following two mutually exclusive projects: Year Cash Flow ( A ) Cash Flow ( B ) 0 ( 4 3 4 , 0

Consider the following two mutually exclusive projects:
Year Cash Flow (A) Cash Flow (B)
0(434,000)(44,500)
1 $39,500 $21,300
2 $66,500 $12,400
3 $83,500 $23,100
4 $549,000 $19,900
The re quired return on these investments is 11 percent.
a. What is the payback period for each project?
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g.,32.16.
b. What is the NPV for each project?
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g.,32.16.
c. What is the IRR for each project?
Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g.,32.16.
d. What is the profitability index for each project?
Note: Do not round intermediate calculations and round your answers to 3 decimal places, e.g.,32.161.
e. Based on your answers in (a) through (d), which project will you finally choose?

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