Question 7

Scenario: Assess the following cash flows for Project J and Project K:

Year	Project J	Project K
0	-80000	-130000
1	20000	35000
2	18000	30000
3	22000	40000
4	26000	45000
5	30000	50000
6	34000	55000

Requirements: a. Determine the NPV for each project with a discount rate of 10 percent. b. Calculate the IRR for each project. c. Evaluate the traditional payback period for each project. d. Select which project(s) should be pursued if they are independent. e. Select which project should be pursued if they are mutually exclusive.