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. The payback for Project A is ____ while the payback for Project B is _____. The NPV for Project A is _____ while the NPV for Project B is _____. The IRR for Project A is while the IRR for Project B is . Which project, if any, should the company accept? Year Cash Flow (A) Cash Flow (B) 0 -$82,000 -$125,000 1 $15,700 $38,600 2 $18,300 $33,400 3 $23,900 $31,200 4 $26,200 $27,500 5 $32,100 $24,000
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