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Problem 9 - 1 7 Comparing Investment Criterla ( LO 1 , 2 , 3 , 5 , 7 ) Consider the following two mutuslly

Problem 9-17 Comparing Investment Criterla (LO1,2,3,5,7)
Consider the following two mutuslly exclusive projects:
Whichever project you choose, if any, you require o 15% return on your investment.
a-1. What is the poybock period for each project? (Round the final answers to 2 decimal places.)
a-2. If you opply the poybock criterion, which investment will you choose?
Project A
Project B
b-1. What is the discounted poybock period for each project? (Do not round Intermedlate calculations. Round the final answers to 2
decimal places.)
b-2. If you opply the discounted poybock criterion, which investment will you choose?
Project A
Project B
c-1. What is the NPV for each project? (Do not round intermedlate calculations. Round the final answers to 2 decimal places. Omit $
sign In your response.)
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? (Round the final answers to 2 decimal places.)
d.2. If you spply the IRR criterion, which investment will you choose?e-1. What is the profitability index for each project? (Do not round intermediate
calculation. Round the final answers to 3 decimal places.)
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?
Project A
Project B
Project A
Project BProblem 9-17 Comparing Investment Criteria (LO1,2,3,5,7)
Consider the following two mutuslly exclusive projects:
Whichever project you choose, if any, you require o 15% return on your investment.
a-1. Whot is the poybock period for each project? (Round the final answers to 2 decimal places.)
a-2. If you opply the poybock criterion, which investment will you choose?
Project A
Project B
b-1. What is the discounted poybock period for each project? (Do not round Intermedlate calculations. Round the final answers to 2
decimal places.)
b-2. If you opply the discounted poybock criterion, which investment will you choose?
Project A
Project B
c-1. What is the NPV for each project? (Do not round intermedlate calculations. Round the final answers to 2 decimal places. Omlt $
sign In your response.)
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? (Round the final answers to 2 decimal places.)
d.2. If you spply the IRR criterion, which investment will you choose?
Project A
Project Be-1. What is the profitability index for each project? (Do not round intermediate
calculation. Round the final answers to 3 decimal places.)
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?
Project A
Project B
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