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onsider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $ 313,014 $ 16,137 1 25,900 5,127 2 55,000 8,946
onsider the following two mutually exclusive projects: |
Year | Cash Flow (A) | Cash Flow (B) |
---|---|---|
0 | $ 313,014 | $ 16,137 |
1 | 25,900 | 5,127 |
2 | 55,000 | 8,946 |
3 | 52,000 | 13,121 |
4 | 392,000 | 9,906 |
Whichever project you choose, if any, you require a 6 percent return on your investment. |
a. What is the payback period for Project A? |
b. What is the payback period for Project B? |
c. What is the discounted payback period for Project A? |
d. What is the discounted payback period for Project B? |
e. What is the NPV for Project A? |
f. What is the NPV for Project B ? |
g. What is the IRR for Project A? |
h. What is the IRR for Project B? |
i. What is the profitability index for Project A? |
j. What is the profitability index for Project B? |
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