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please answer all parts of the question. Consider the following two mutually exclusive projects: Year 0 Cash Flow (A) $342,000 53,000 73,000 73,000 448,000 1
please answer all parts of the question.
Consider the following two mutually exclusive projects: Year 0 Cash Flow (A) $342,000 53,000 73,000 73,000 448,000 1 2. 3 4 Cash Flow (B) $50,500 24,800 22,800 20,300 15,400 WN 5 Whichever project you choose, if any, you require a return of 14 percent on your investment a-1 What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Project A Project B years years a-2 If you apply the payback criterion, which investment will you choose? a-2 If you apply the payback criterion, which investment will you choose? Project A Project B b-1 What is the discounted payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Project A Project B years years b-21f you apply the discounted payback criterion, which investment will you choose? Project A Project B C-1 What is the NPV for each project? (Do not round intermediate calculations and C-1 What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Project A Project B c-2 If you apply the NPV criterion, which investment will you choose? Project A Project B d-1 What is the IRR for each project? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Project A Project B % % d-2 If you apply the IRR criterion, which investment will you choose? Project A Project B tes e-1 What is the profitability index for each project? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) Project A Project B e-2 if you apply the profitability index criterion, which investment will you choose? Project A Project B e-1 What is the profitability index for each project? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) Project A Project B tes e-2 If you apply the profitability index criterion, which investment will you choose? Project A Project B f. Based on your answers in (a) through (e), which project will you finally choose Step by Step Solution
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