Question
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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