Question
Consider the following two mutually exclusive projects: YearCash Flow (A)Cash Flow (B)0$ 426,000$ 40,500143,50020,500262,50013,200379,50019,1004541,00015,900 The required return on these investments is 12 percent. What is
Consider the following two mutually exclusive projects:
YearCash Flow (A)Cash Flow (B)0$ 426,000$ 40,500143,50020,500262,50013,200379,50019,1004541,00015,900The required return on these investments is 12 percent.
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.
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.
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.
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.
Based on your answers in (a) through (d), which project will you finally choose
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