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Required Returns: 1 2 % Year Project 1 Project 2 0 - $ 1 9 4 , 7 0 0 - $ 2 6 6
Required Returns:
Year Project Project
$$
What are the NPVs of these two projects?
Project NPV:
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and Project NPV:
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What are the IRR's of these two projects?
Project IRR:
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and Project IRR:
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What are the Payback Periods of these two projects?
Project Payback:
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and Project Payback:
Select
What are the Profitability Indexes of these two projects?
Project Profitability Index:
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and Project Profitability Index:
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At what discount rate are you indifferent between these two projects; and which project would you choose if discount rates were LOWER than this point?
Crossover Rate:
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