Problem 9-17 Comparing Investment Criteria [LO1, 2, 3, 5, 7] Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$ -$ 0 Hint 348,000 51,000 erences 1234 47,000 24,200 67,000 22,200 67,000 19,700 14,800 442,000 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.) Project A Project B Payback period years years a- If vou annly the navhack criterion which investment will vou choose? 5 ht ences a- 72 2. If you apply the payback criterion, which investment will you choose? O 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 62 2. If you apply the discounted payback criterion, which investment will you choose? O Project A O 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.) 15 5 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 ats Hint eferences Project A Project B C- 2. If you apply the NPV criterion, which investment will you choose? O Project A O 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.) Project A Project B IRR % % 5 d- PE If you apply the IRR criterion, which investment will you choose? O Project A O Project B Hint erences 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.) Project A Project B Profitability index e- 62 2. If you apply the profitability index criterion, which investment will you choose? O Project A O Project B ignment #7 Chapter 9 i Saved 15 5 ts e- 62 Hint eferences If you apply the profitability index criterion, which investment will you choose? O Project A O Project B f. Based on your answers in (a) through (e), which project will you finally choose? V252F%252Fnewc