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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: 12%
Year Project 1 Project 2
0-$194,700-$266,200
169,16849,236
258,91867,690
352,81672,896
451,480111,408
546,728124,872
What are the NPV's of these two projects?
Project 1 NPV:
[ Select ]
and Project 2 NPV:
[ Select ]
What are the IRR's of these two projects?
Project 1 IRR:
[ Select ]
and Project 2 IRR:
[ Select ]
What are the Payback Periods of these two projects?
Project 1 Payback:
[ Select ]
and Project 2 Payback:
[ Select ]
What are the Profitability Indexes of these two projects?
Project 1 Profitability Index:
[ Select ]
and Project 2 Profitability Index:
[ Select ]
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:
[ Select ]

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