S$09-17$ Comparing Investment Criteria $[$LO$1,2,3,5,7]$

Consider the following two mutually exclusive projects:

Whichever project you choose, if any, you require a return of $11$ percent on your investment.

a$-1.$ What is the payback period for each project?

Note: Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

a$-2.$ If you apply the payback criterion, which investment will you choose?

Project A

O Project B

b$-1.$ What is the discounted payback period for each project?

Note: Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

b$-2.$ If you apply the discounted payback criterion, which investment will you choose?

Project A

Project B

c$-1.$ What is the NPV for each project?

Note: Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

c$-2.$ If you apply the NPV criterion, which investment will you choose?

Project A

Project B

d$-1.$ What is the IRR for each project?

Note: Do not round intermediate calculations and enter your answers as a percent rounded to $2$ decimal places,

e$.$g$.,32\mathrm{.}16.$

d$-2.$ If you apply the IRR criterion, which investment will you choose?

Project A

Project B

e$-1.$ What is the profitability index for each project?

Note: Do not round intermediate calculations and round your answers to $3$ decimal places, e$.$g$.,32\mathrm{.}161.$