Question
Maxwell Software, Inc., has the following mutually exclusive projects. Year Project A Project B 0 $28,000 $31,000 1 16,000 17,000 2 12,500 11,000 3 3,700
| Maxwell Software, Inc., has the following mutually exclusive projects. |
| Year | Project A | Project B | ||
| 0 | $28,000 | $31,000 | ||
| 1 | 16,000 | 17,000 | ||
| 2 | 12,500 | 11,000 | ||
| 3 | 3,700 | 12,500 | ||
| 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? |
|
| b-1. | 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 | $ | |
| b-2. | Which, if either, of these projects should be chosen if the appropriate discount rate is 15 percent? |
|
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Fundamentals Of Futures And Options Markets
Authors: Jonn C. Hull
8th International Edition
0133382850, 9780133382853
