Problem 5-16 Comparing Investment Criteria

Consider the following cash flows of two mutually exclusive projects for AZ-Motorcars. Assume the discount rate for AZ-Motorcars is 10 percent.

Year	AZM Mini-SUV			AZF Full-SUV
0	$	450,000		$	800,000
1		320,000			350,000
2		180,000			420,000
3		150,000			290,000

a.	What is the payback period for each project? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))

	Payback period
AZM Mini-SUV
AZF Full-SUV

b.	What is the NPV for each project? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))

	NPV
AZM Mini-SUV	$
AZF Full-SUV	$

c.	What is the IRR period for each project? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))

	IRR
AZM Mini-SUV	%
AZF Full-SUV	%