Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please label each answer and also as a reward for this long question you will get a like by me which is rare. 8 1

please label each answer and also as a reward for this long question you will get a like by me which is rare.
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
8 1 3 points Year Cash Flow (A) Cash Flow (B) -$ -$ 0 345,000 48,500 50,000 24,500 2 70,000 22,500 3 70,000 20,000 4 445,000 15,100 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.) eBook Print Payback period years Project A Project B years a- 2. If you apply the payback criterion, which investment will you choose? Project A O Project B b- What is the discounted payback period for each project? (Do not round intermediate 1. calculations and round your answers to 2 decimal places, e.g., 32.16.) Project A Project B Discounted payback period years years b- 2. If 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 round your answers to 2 decimal places, e.g., 32.16.) NPV Project A Project B 2. If you apply the NPV criterion, which investment will you choose? Project A Project B d. What is the IRR for each project? (Do not round intermediate calculations and enter 1. your answers as a percent rounded to 2 decimal places, e.g., 32.16.) IRR % Project A Project B % d. What is the IRR for each project? (Do not round intermediate calculations and enter 1. your answers as a percent rounded to 2 decimal places, e.g., 32.16.) IRR Project A Project B % % d- 2. If you apply the IRR 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.) Profitability index Project A Project B 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

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions