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Greystone, Inc., has the following mutually exclusive projects: Year Project A Project B 0 -$13,300 $8,700 123 7,500 3,400 6,500 2,900 3 2,100 5,300
Greystone, Inc., has the following mutually exclusive projects: Year Project A Project B 0 -$13,300 $8,700 123 7,500 3,400 6,500 2,900 3 2,100 5,300 a. Calculate the payback period for each project. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. Based on the payback period, which project should the company accept? c. If the appropriate discount rate is 12 percent, what is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) d. Based on the NPV, which project should the company accept? Project A Project B years years b. Payback decision c. Project A Project B d. NPV decision
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