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	$	340,000			$	51,500
1		55,000				25,000
2		75,000				23,000
3		75,000				20,500
4		450,000				15,600

Whichever project you choose, if any, you require a return of 16 percent on your investment.

a) 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.)

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

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

d) What is the IRR for each project? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

e) 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.)