Hello I need help with my accounting princables of finance HMW chapter 9. I have attched the file below with the problems that I need help with thank you in advance.

ACCT2060 Chapter 9 Homework For problems 1-4, use the following cash flows for projects A and B: Years: 0 1 2 3 4 Project A: (-$2000, $600, $700, $800, $900) Project B: (-$2000, $300, $400, $850, $950) 1. Calculate the payback period for projects A and B. 2. Calculate the internal rate of return for projects A and B. 3. If only one project can be chose and the required rate of return is 5%, which should be accepted? Why? (Use NPV for your analysis.) 4. If only one project can be chosen and if the discount rate is 12%, which project should be accepted? Why? (Use NPV for your analysis.) 5. Consider the following abbreviated financial statements for a proposed investment: Year Gross Book Value Accumulated Dep. Net Book Value Sales Costs Depreciation Taxes (50%) Net Income 0 $160 $160 1 $160 40 $120 2 $160 80 $80 3 $160 120 $40 4 $160 160 $0 $95 33 40 $11 $11 $90 30 40 $10 $10 $97 25 40 $16 $16 $80 10 40 $15 $15 What is the average accounting return (AAR) for proposed investment? This project will use straight-line depreciation. 6. A firm is considering the following two investment projects. Project A requires an initial outlay of $500 and will return $120 per year for the next seven years. Project B requires an initial outlay of $5,000 and will return $1,350 per year for the next five years. The required rate of return is 10%. Use the net present value criterion to determine which investment is preferable if only one project can be chosen. Why? 7. Calculate the internal rate of return for each of the projects described in the previous problem. 8. Calculate the profitability index for each of the investments described in the previous problem. ACCT2060 Chapter 9 Homework For problems 1-4, use the following cash flows for projects A and B: Years: 0 1 2 3 4 Project A: (-$2000, $600, $700, $800, $900) Project B: (-$2000, $300, $400, $850, $950) 1. 2. Calculate the payback period for projects A and B. 600+700+800=2100 700/800= 2.875 2.875 years 300+400+850+950= 2500 450/950= 3.47 3.47 years Calculate the internal rate of return for projects A and B. -2000+600/ (1+IRR) +700/ (1+IRR) ^2+800/(1+IRR)^3+900/(1+IRR)^4= 17.09 -2000+300/ (1+IRR)+400/(1+IRR)^2+850/(1+IRR)^3+950/(1+IRR)^4= 7.88 3. If only one project can be chose and the required rate of return is 5%, which should be accepted? Why? (Use NPV for your analysis.) -2000+600/ (1+5) +700/ (1+5) ^2+800/ (1+5) ^3+900/ (1+5) ^4 NPV= 637.85 -2000+300/ (1+5) +400/ (1+5) ^2+850/ (1+5) ^3+950/ (1+5) ^4 NPV=164.36 The first project (A) should be chosen because it has a higher return rate 4. If only one project can be chosen and if the discount rate is 12%, which project should be accepted? Why? (Use NPV for your analysis.) -2000+600/(1+12)+700/(1+12)^2+800/(1+12)^3+900/(1+12)^4 NPV= 235.14 -2000+300/(1+12)+400/(1+12)^2+850/(1+12)^3+950/(1+12)^4 NPV= -204.51 The first project (A) should be chosen because it is a positive return rate 5. Consider the following abbreviated financial statements for a proposed investment: Year Gross Book Value Accumulated Dep. Net Book Value Sales Costs Depreciation Taxes (50%) Net Income 0 $160 $160 1 $160 40 $120 2 $160 80 $80 3 $160 120 $40 4 $160 160 $0 $95 33 40 $11 $11 $90 30 40 $10 $10 $97 25 40 $16 $16 $80 10 40 $15 $15 What is the average accounting return (AAR) for proposed investment? This project will use straight-line depreciation. 11+10+16+15 = 13 4 160+0/2 =80 6. 13/80=16.25% A firm is considering the following two investment projects. Project A requires an initial outlay of $500 and will return $120 per year for the next seven years. Project B requires an initial outlay of $5,000 and will return $1,350 per year for the next five years. The required rate of return is 10%. Use the net present value criterion to determine which investment is preferable if only one project can be chosen. Why? -500+120/(1+10)+120/(1+10)^2+120/(1+10)^3+120/(1+10)^4+120/(1+10)^5+120/ (1+10)^6+120/(1+10)^7 NPV= 84.21 -5000+1350/(1+10)+1350/(1+10)^2+1350/(1+10)^3+1350/(1+10)^4+1350/(1+10)^5 NPV= 117.56 Project B should be chosen because it has a higher return rate 7. Calculate the internal rate of return for each of the projects described in the previous problem. -500+120/(1+IRR)+120/(1+IRR)^2+120/(1+IRR)^3+120/(1+IRR)^4+120/ (1+IRR)^5+120/(1+10)^6+120/(1+10)^7 = 14.95% -5000+1350/(1+IRR)+1350/(1+IRR)^2+1350/(1+IRR)^3+1350/(1+IRR)^4+ 1350/(1+IRR)^5= 10.92% 8. Calculate the profitability index for each of the investments described in the previous problem. 840/500=1.68 6750/5000=1.35