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Consider the following two mutually exclusive projects YearCash Flow (A) Cash Flow (B) 0 -426,000 43,500 62,500 79,500 541,000 -S 40,500 20,500 13,200 19,100 15,900
Consider the following two mutually exclusive projects YearCash Flow (A) Cash Flow (B) 0 -426,000 43,500 62,500 79,500 541,000 -S 40,500 20,500 13,200 19,100 15,900 4 The required return on these investments is 12 percent. a. What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Payback period Project A Project B years years b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Net present value Project A Project B c. What is the IRR for each project? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return Project A Project B d. What is the profitability index for each project? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) Profitability index Project A Project B
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