Question
Maxwell Software, Inc., has the following mutually exclusive projects. Year Project A Project B 0 $24,000 $27,000 1 14,000 15,000 2 10,500 11,500 3 3,300
Maxwell Software, Inc., has the following mutually exclusive projects. Year Project A Project B 0 $24,000 $27,000 1 14,000 15,000 2 10,500 11,500 3 3,300 10,500 a-1. Calculate the payback period for each project. (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) Payback period Project A years Project B years a-2. Which, if either, of these projects should be chosen? Project A Project B Both projects Neither project b-1. What is the NPV for each project if the appropriate discount rate is 17 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 $ b-2. Which, if either, of these projects should be chosen if the appropriate discount rate is 17 percent? Project A Project B Both projects Neither project
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