Remember to explain all your steps and to show all formulas you use before you put numbers into the equations. -Write the formula, substitute the numbers into the formula, say what is left to compute, compute

. Question 1 For question 1, use the following cash flows for projects A and B: A: (-$2,000, $500, $600, $700, $800) B: (-$2,000, $950, $850, $400, $300) AB. (1.1) Calculate the payback period for projects A and B. (1.2) If the discount rate is 12%, what is the discounted payback period for project A? For Project B? (1.3) Calculate the internal rate of return for projects A and B. (1.4) If A and B are mutually exclusive projects and the required rate of return is 5%, which should be accepted? (1.5) If the discount rate is 12%, and A and B are mutually exclusive, which project should be accepted? (1.6) At what discount rate will we be indifferent between A and B