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Consider the following two mutually exclusive projects: Cash Flow (A) Cash Flow (B) -$358,806 -$15,652 Year 0 Q 1 2 3 4 28,600 57,000
Consider the following two mutually exclusive projects: Cash Flow (A) Cash Flow (B) -$358,806 -$15,652 Year 0 Q 1 2 3 4 28,600 57,000 54,000 428,000 Whichever project you choose, if any, you require a 6 percent return on your investment. Required: (a) What is the payback period for Project A? 3.51 years (b) What is the payback period for Project B? 2.13 years (c) What is the discounted payback period for Project A? (Click to select) (d) What is the discounted payback period for Project B? (Click to select) (e) What is the NPV for Project A? (Click to select) 5,485 8,536 13,036 8,106 (1) What is the NPV for Project B? (Click to select) e ON 3 (d) What is the discounted payback period for Project B? (Click to select) (e) What is the NPV for Project A? (Click to select) (f) What is the NPV for Project B? (Click to select) (g) What is the IRR for Project A? (Click to select) (h) What is the IRR for Project B? (Click to select) Q (i) What is the profitability index for Project A? (Click to select) (i) What is the profitability index for Project B? (Click to select) V O e
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Year CF A CF B Discount 6 PV A PV B Discount 7 7 A 7 B 0 358806 15652 1 358806 1...Get Instant Access to Expert-Tailored Solutions
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