Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I got a wrong answer for this one. what answer would be right? do it with an explanation please Consider the following two mutually exclusive
I got a wrong answer for this one. what answer would be right? do it with an explanation please
Consider the following two mutually exclusive projects: Cash Flow Cash Flow You: {A} (a) 0 4460.000 $ 33.0% 1 96,000 46,030 2 116,000 33,030 3 76.000 30,530 4 456,000 25,500 Whichever project you choose, if any. you require a 15% return on your investment. a-'I. What is the payback period for each project? {Round the final answers to 2 decimal places.} Payback Period Project A 3.3? a years Project 3 2.49 0 years a-2. If you apply the payback criterion, which investment will you choose? Project A Project B a b-1. What is the discounted payback period for each project? [Do not round intermediate calculations. Round the final answers to 2 decimal places.} Discount-d Pork-to]: Period Project A 3.52 0 years Project B 3-52 a years b-2. If you apply the discounted payback criterion, which investment will you choose? Project A Project B o c1. What is the NPV for each project? [Do not round intermediate calculations. Round the nal answers to 2 decimal places. Omit $ sign in your response] In": Project A 5 21:331-54 0 mm . s - o c2. If you apply the NPV criterion, which investment will you choose? Project A 0 Project B (1-1. What is the IRR for each project? {Round the nal answers to 2 decimal places.) IRR Project A 16.79 0 1; Project 3 19.35 0 5% d-2. If you apply the IRR criterion. which investment will you choose? Project A Project B a e-1. What is the profitability index for each project? (Do not round intermediate calculation. Round the final answers to 3 decimal places.) Profitability Index Project A 1. 050 x Project B 1. 090 x e-2. If you apply the profitability index criterion, which investment will you choose? O Project A O Project B f. Based on your answers in (a) through (e), which project will you finally choose? O Project A O Project BStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started