Question
Please answer the following question, I have posted it as an attachment as well in case it is easier to read: Q1 Maxwell Software, Inc.,
Please answer the following question, I have posted it as an attachment as well in case it is easier to read:
Q1
Maxwell Software, Inc., has the following mutually exclusive projects. |
Year |
| Project A |
| Project B |
0 |
| ?$25,000 |
| ?$28,000 |
1 |
| 14,500 |
| 15,500 |
2 |
| 11,000 |
| 12,000 |
3 |
| 3,400 |
| 11,000 |
a1. | 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 |
a2. | Which, if either, of these projects should be chosen? | ||||||||
|
| ||||||||
|
|
b1. | 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 | $ |
b2. | Which, if either, of these projects should be chosen if the appropriate discount rate is 17 percent? | ||||||||
|
| ||||||||
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