I just need the answers to 1 & 2

Payback, NPV, Managerial Incentives, Ethical Behavior Kent Tessman, manager of a Dairy Products Division, was pleased with his division's performance over the past three years. Each year, divisional profits had increased, and he had earned a sizable bonus. (Bonuses are a linear function of the division's reported income.) He had also received considerable attention from higher management. A vice president had told him in confidence that if his performance e over the next three years matched his first three, he would be promoted to higher management. Determined to fulfill these expectations, Kent made sure that he personally reviewed every capital budget request. He wanted to be certain that any funds invested would provide good, solid returns. (The division's cost of capital is 10 percent.) At the moment, he is reviewing two independent requests. Proposal A involves automating a manufacturing operation that is currently labor intensive. Proposal B centers on developing and marketing a new ice cream product. Proposal A requires an initial outlay of $250,000, and Proposal B requires $312,50o. Both projects could be funded, given the status of the division's capital budget. Both have an expected life of six years and have the following projected after-tax cash flows: Year Proposal A Proposal B 1 $150,000 $(37,500) (25,000) 2 125,000 (12,500) 3 75,000 4 37,500 212,500 25,000 275,000 337,500 12,500 6 After careful consideration of each investment, Kent approved funding of Proposal A and rejected Proposal B. h ead to enh he feliinA ntahlama 1o snd EkIe on The nrecetlie tahler neded TA EI Previous After careful consideration of each investment, Kent approved funding of Proposal A and rejected Proposal B. The present value tables provided in Exhibit 19B.1 and Exhibit 19B.2 must be used to solve the following problems. Required: 1. Compute the NPV for each proposal. Round intermediate calculations and your final answers to the nearest dollar NPV Proposal A Proposal B 2. Compute the payback period for each proposal. If required, round your answers to two decimal places. Payback Period Proposal A vears Proposal B years 3. According to your analysis, which proposal (s) should be accepted? 4. Which of the items in the list is not a possible reason for Kent's rejection of proposal B? If vou knew that there were no liquidity concems that would justify the rejection of proposal B, would you judge Kent's behavior to be ethical? Present Value of $1* 40% 12 % 30% 32% 24% 26% 28% 18% 20% 22% Periods 2% 4% 6% 8% 10% 14% 16% 0.714 0510 0.364 0.781 0.610 0.477 0.373 0.291 0.227 0.178 0.139 0.769 0.592 0.455 0.758 0574 0.435 1 0.980 0.961 0.942 0.924 0962 0.925 0889 0.855 0.943 0.890 0.840 0.926 0.857 0.794 0.909 0.826 0.751 0.683 0.621 0.564 0.893 0.797 0.712 0.636 0.567 0.877 0,862 0.847 0.718 0.609 0.516 0.437 0.833 0.694 0.579 0.482 0.402 0.820 0.672 0.551 0.451 0.370 0.303 0.249 0.204 0.167 0.137 0.806 0.650 0.524 0.423 0.341 0.275 0.222 0.179 0.144 0.116 0.094 0.076 0.061 0049 0.040 0.794 2 0.630 0.500 0.397 0.315 0.769 0.743 0.675 0.592 0.641 0.552 0.792 0.735 0.350 0269 0.207 0.159 0.123 0.094 0.073 0.056 0.043 0033 0.025 0.020 0.329 0250 0.189 0.143 0.108 0.082 0.260 0.186 0.133 0.095 0.068 5 0.906 0.822 0.747 0.705 0.665 0.681 0.519 0.476 6 0.888 0.871 0.790 0.760 0.731 0.703 0.676 0.650 0.625 0.601 0.636 0.507 0456 0.400 0410 0.354 0.305 0.370 0.335 0.250 0.198 7 0.583 0.513 0.452 0.404 0.361 0.322 0287 0.257 0.314 0.279 8 0.853 0.627 0.540 0.500 0.463 0.429 0.397 0368 0.467 0.351 0.266 0.225 0.233 0.194 0.162 0.135 0.112 0.093 0.078 0.065 0.054 0.045 0.157 0.837 0.592 0.424 0.308 0.263 0.125 0.099 0.079 0.062 0.050 0.108 0.085 0.066 0052 0.048 0.035 0.025 0.018 0.013 0.009 0.006 0.005 0.003 10 0.820 0.804 0.788 0.558 0.386 0.270 0.227 0.195 0.168 0.191 0.062 0.046 0.036 0.027 0.021 0016 0.012 0.009 0.007 0.005 0.004 0.003 0.002 0.002 0.001 0,001 0.001 0,001 0.000 0.000 0,000 11 0.527 0.350 0.237 0.162 0.137 0.112 12 0.497 0.319 0.208 0.092 13 0773 0.758 0.743 0.469 0.442 0.290 0.263 0.239 0.229 0.182 0.145 0.116 0.075 0.062 0.040 0.032 0.025 0.019 0015 0.012 0.009 0.007 0.006 0.004 0.003 0.003 0.002 0.002 0001 0.001 0.001 0.002 0.001 0001 14 0.577 0.340 0,205 0.160 0.183 0.140 0.125 0099 0084 0.071 0.060 0.039 15 0.555 0.534 0513 0.494 0417 0.315 0292 0.270 0.108 0.051 0031 0.025 0,020 0.016 0.012 0.010 0.008 0.006 0005 0.004 0003 0.002 0.002 0.002 0.001 16 0.728 0.394 0.218 0.163 0.146 0.130 0.116 0.104 0093 0083 0074 0.123 0.108 0093 0.080 0069 0.060 0.051 0044 0.038 0042 0.034 0028 0.032 0015 17 0714 0.700 0.686 0.673 0.660 0.647 0.371 0350 0.331 0.312 0.198 0026 0.021 0.012 0.009 18 0.250 0.180 0095 0.051 0.038 19 0.002 0.002 0.001 0.001 0.001 0.000 0.000 0.000 0.000 0.000 0.000 0000 0 000 0.475 0.456 0232 0215 0.199 0.184 0.164 0083 0073 0.064 0056 0,049 0043 0031 0026 0.022 0018 0.023 0017 0.007 0.005 0,004 0.003 0.002 0.002 0.001 0.001 0.001 0.001 0,000 0.000 20 0.149 0.037 0.031 0026 0.022 0.019 0.016 0019 0.014 0.011 0.009 21 0439 0294 0.135 0.123 0015 22 0.422 0278 0.262 0.247 0.013 23 0.634 0.406 0.390 0.375 0.361 0.347 0.333 0.321 0.170 0.112 0033 0028 0.024 0015 0013 0.010 0.008 0.007 0,007 24 0.622 0.610 0.598 0586 0.158 0.102 0066 0.043 25 0.006 0.005 0233 0.220 0.146 0.092 0.038 0,059 0.010 26 0.135 0.125 0.084 0.053 0,033 0021 0.014 0.009 0.007 27 0.006 0.004 0.207 0.196 0.185 0076 0069 0.063 0099 0.057 0047 0042 0.029 0.026 0.022 0.020 0018 0.016 014 0.012 0.011 0.010 28 0.574 0.563 0.005 0.003 0.116 0.006 29 0,004 0.002 0.107 0037 0.008 30 0.005 0003 0.003 0552 0.308 0.002 0.174 0033 0,007 0,004 sP-Am+ Present Value of an Annuity of $1 in Arrears 40%% 32% 30% 28% 26% 24% 22% 20% 16% 18% 14% 12% 8% 10% 6% oriods 4% 2% 0.71 1.22 1.58 1.849 2.035 2.168 2.263 2.33 0.758 1.331 1.766 2.096 2.345 0.769 0.794 1.424 0.781 1.392 0.806 0.820 0.833 1.528 0.877 0.862 1.647 1.605 2.322 2.246 2.914 2.798 3.433 3.274 3.889 3.685 4.288 4.039 4.639 4.344 0.847 1.566 0.893 0.926 0.909 1.783 2.577 2.487 3.312 3.170 3.993 3.791 4.623 4.355 0.943 1.833 2.673 3.465 1.361 0.980 1.942 2.884 3.808 0.962 1.866 2.775 3.630 4.452 5.242 6.002 6.733 7.435 8.111 8.760 1.457 1.492 2,042 2.494 2.864 3.167 1.690 2.402 3.037 3.605 4.111 4.564 4.968 5.328 5.650 5.938 1.736 2 1.816 1.981 2.404 2.745 1.868 1,923 2.320 2.635 2.106 2.589 2.991 3.326 2.174 2.690 3.127 3.498 3.812 3.078 2.166 2241 2.532 2.759 2.937 3.076 2436 2.643 2.802 4212 4.713 5 2534 2677 2.786 2.885 3.020 4.917 6 5.601 6.472 3.083 3.242 3.416 3.605 3.837 4.031 4.192 4.327 4.439 5.206 4.868 5.747 5.335 6.247 5.759 6.710 6.145 7.139 6.495 5.582 6.210 6.802 7.360 7 2.925 3.019 3.092 3.241 3.619 3.421 8 7.325 2.379 2.868 2.930 2.978 3.013 3.786 3.566 3.923 3.682 3.776 3.184 3.269 3.335 3366 3.465 4.946 4.607 5.216 4.833 4.303 4.494 8.162 2.414 10 8.983 2.438 3.147 3.543 4.035 5.453 5.029 5.660 5.197 5.842 5.342 6.002 5.468 6.142 5.575 6.265 5.668 6.373 5.749 6.467 5.818 4.656 4.793 4910 9.787 10.575 7.887 11 2.456 3.606 3.387 3.190 4.127 3.851 3.912 4:265 3.962 4.001 24.033 4.059 4.080 4,097 4.110 4:121 4130 4.137 4.1433.831 4.147 4.151 4524 4.154 4.528 4,157 4531 4,159 4.979 4.534 4.1603.842 8.384 8.853 9.295 7.536 7.904 6.814 7.103 6.194 12 9.385 3.223 3.040 2.469 2.478 2.484 4.203 3656 3.427 4.533 9.986 6.424 13 11.348 3.2493.061 3.268 3.076 3.088 3.097 5.008 3.695 3.459 3.726 3.483 3.751 12.106 10.563 12.849 11.118 13.578 11.652 10.106 14.292 12.166 10477 14.992 12.659 10.828 15.678 13.134 11.158 16.351 13.590 11470 17.011 14.029 11.764 17.658 14.451 12.042 10.201 18.292 14.857 12.303 10.371 18.914 15.247 12.550 10.529 8.985 19.523 15.622 12.783 10.675 9.077 20.121 15.983 13.003 10.810 9.161 20.707 16.330 13.211 10.935 9.237 21.281 16663 13 406 11.051 9.307 21.844 16.984 13.591 11.158 9.370 22.396 17.292 13.765 11258 9.427 4.611 8.244 7.367 6.628 14 5.092 4.675 4.315 4.357 4.391 4.419 4.442 9.712 8.559 7.606 6.811 6.974 7.120 7.250 7.366 7.469 7.562 7.645 7.718 7.784 7.843 7.896 7,943 15 7.824 9.122 8.022 9372 8.201 9.604 8.365 9.818 8.514 10.017 8.851 5.162 4.730 3.503 3.518 3.529 3.539 3.546 3.551 3.556 3.283 3.295 2.489 2.492 16 17 5.222 4.775 5.273 4.812 3771 3.786 3.799 18 3.304 3.311 3.316 3.320 3.104 3.109 2.494 19 6.550 5.877 5.316 5.353 5.384 5.410 4.843 4.870 4891 4.909 2.496 20 6.623 5.929 4.460 4.476 4.488 4.499 4.507 3.808 3.816 3.822 3.827 3.113 3.116 3.118 2497 2.498 21 22 8.649 6.687 5.973 6.743 6011 8.772 3.323 3.325 3.327 3.329 3.330 3.331 3.331 3.332 3.332 2.498 2.499 23 8.883 6.792 6.044 6.835 6.073 6.873 6097 6.906 6.118 5.432 5.451 5.467 4925 4.937 3559 3.562 3.564 3.8373.566 3.567 3.568 3.569 3569 3.120 3.121 3.122 3.123 3.123 3.124 3.124 3.124 2.500 24 2.499 2.499 2.500 2.500 25 4.948 5.480 4.956 4,964 4.514 3.834 26 27 28 29 30 4/520 6.935 6.136 3.839 5.492 5.502 6.983 6.166 5.510 7.003 6.177 5.517 7.984 6.961 6.152 4.970 3.840 3.841 2.500 8.022 8.055 4.975 2.500