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S 0 9 - 1 7 Comparing Investment Criterla [ LO 1 , 2 , 3 , 5 , 7 ] Consider the following two
S Comparing Investment Criterla LO
Consider the following two mutually exclusive projecd What is the IRR for each project? Do not round Intermedlate colculatlons and
enter your answers as a percent rounded to decimal places, eg
d If you apply the IRR criterion, which investment will you choose?
Project A
Project B
e What is the profitability index for each project? Do not round Intermedlate
calculations and round your answers to decimal places, eg
e If you apply the profitability index criterion, which investment will you choose?
Project A
Project B
f Based on your answers in a through e which project will you finally choose?
Project A
Project BS Comparing Investment Criterla LO
Consider the following two mutually exclusive projects:
Whichever project you choose, if any. you require a return of percent on your
investment.
What is the payback period for each project? Do not round Intermedlate
calculatlons and round your answers to declmal places, eg
If you apply the payback criterion, which investment will you choose?
Project A
Project B
b What is the discounted payback period for each project? Do not round
Intermedlate calculations and round your answers to decimal places, eg
b If you apply the discounted payback criterion, which investment will you choose?
Project A
Project B
c What is the NPV for each project? Do not round Intermedlete calculatlons and
round your answers to decimal places, eg
c If you apply the NPV criterion, which investment will you choose?
Project A
Project B
d What is the IRR for each project? Do not round Intermedlate colculatlons and
enter your answers as a percent rounded to decimal ploces, egts:
Whichever project you choose, if any. you require a return of percent on your
investment.
What is the payback period for each project? Do not round Intermedlate
calculatlons and round your answers to declmal places, eg
If you apply the payback criterion, which investment will you choose?
Project A
Project B
b What is the discounted payback period for each project? Do not round
Intermedlate calculations and round your answers to decimal places, eg
b If you apply the discounted payback criterion, which investment will you choose?
Project A
Project B
c What is the NPV for each project? Do not round Intermedlete calculatlons and
round your answers to decimal places, eg
c If you apply the NPV criterion, which investment will you choose?
Project A
Project B
d What is the IRR for each project? Do not round Intermedlate colculatlons and
enter your answers as a percent rounded to decimal ploces, eg
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