Question
Quattro, Inc. has the following mutually exclusive projects available. The company has historically used a 4-year cutoff for projects. The required return is 11 percent.
Quattro, Inc. has the following mutually exclusive projects available. The company has historically used a 4-year cutoff for projects. The required return is 11 percent. Do not use $ or commas. Use two decimal places.
Project A | Project B | |
CF0 | -700 | -700 |
CF1 | 100 | 200 |
CF2 | 200 | 200 |
CF3 | 200 | 200 |
CF4 | 240 | 200 |
CF5 | 300 | 250 |
CF6 | 350 | 250 |
CF7 | 350 | 250 |
The payback for Project A is Blank 1 while the payback for Project B is Blank 2.
The NPV for Project A is Blank 3 while the NPV for Project B is Blank 4.
The project the company should accept is (A or B) Blank 5.
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Blank 2
Blank 3
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