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Novell, Inc., has the following mutually exclusive projects. Year Project A Project B 0 $25,000 $28,000 123 14,500 15,500 2 11,000 12,000 3,400 11,000
Novell, Inc., has the following mutually exclusive projects. Year Project A Project B 0 $25,000 $28,000 123 14,500 15,500 2 11,000 12,000 3,400 11,000 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.) Answer is complete and correct. Project A 1.955 years Project B 2.045 years a-2. If the company's payback period is two years, 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.) Answer is complete but not entirely correct. Project A $ 2,448.30 Project B $ 882.10
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