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Firm ABC is evaluating two mutually exclusive projects with the following cashflows: Year Project 1 Project 2 0 43,391 47,489 1 16,600 3,025 2 10,590

Firm ABC is evaluating two mutually exclusive projects with the following cashflows:

Year

Project 1

Project 2

0

43,391

47,489

1

16,600

3,025

2

10,590

10,549

3

24,338

11,295

4

19,143

14,123

5

54,764

If the discount rate is

10%,

calculate the NPV, Payback Period, and Profitability Ratio of each project.

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Part 1

Answer:

Project 1

Project 2

NPV (round to nearest cents)

enter your response here

enter your response here

Payback (round to two decimals)

enter your response here

enter your response here

Profitability Ratio (round to two decimals)

enter your response here

enter your response here

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