Problem $8-15$ Comparing Investment Criteria $[$LO $1,3,4,6]$ The required return on these investments is $13$ percent.

a$.$ What is the payback period for each project?

Note: Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

b$.$ What is the NPV for each project?

Note: Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

c$.$ What is the IRR for each project?

Note: Do not round intermediate calculations and enter your answers as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

d$.$ What is the profitability index for each project?

Note: Do not round intermediate calculations and round your answers to $3$ decimal places, e$.$g$.,32\mathrm{.}161.$

e$.$ Based on your answers in $($a$)$ through $($d$),$ which project will you finally choose? $($Note: if conclusions with evaluation methods

disagree, choose project with highest NPV$.)$

Consider the following two mutually exclusive projects:

Year Cash Flow $($A$)$ Cash Flow $($B$)$

$0$$ $427,000$$ $41,000$

$143,00020,600$

$263,00013,100$

$380,00019,600$

$4542,00016,400$

The required return on these investments is $13$ percent.

What is the payback period for each project?

Note: Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

What is the NPV for each project?

Note: Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

What is the IRR for each project?

Note: Do not round intermediate calculations and enter your answers as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

What is the profitability index for each project?

Note: Do not round intermediate calculations and round your answers to $3$ decimal places, e$.$g$.,32\mathrm{.}161.$

Based on your answers in $($a$)$ through $($d$),$ which project will you finally choose? $($Note: if conclusions with evaluation methods disagree, choose project with highest NPV$.)$