Question
Maxwell Software, Inc., has the following mutually exclusive projects. Year Project A Project B 0 $32,000 $35,000 1 18,000 19,000 2 14,500 13,000 3 4,100
Maxwell Software, Inc., has the following mutually exclusive projects. Year Project A Project B 0 $32,000 $35,000 1 18,000 19,000 2 14,500 13,000 3 4,100 14,500 Calculate the payback period for each project: Payback period Project A ___years Project B ___years Which, if either, of these projects should be chosen? Project A Project B Both projects Neither project What is the NPV for each project if the appropriate discount rate is 15 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) NPV Project A $_____ Project B $______ Which, if either, of these projects should be chosen if the appropriate discount rate is 15 percent? ______ Project A or _____ Project B or _____Both or _____projects Neither project
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