S$09-17$ Comparing Investment Criterla $[$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.

$0-1.$ What is the payback period for each project? $($Do not round Intermedlate

calculatlons and round your answers to $2$ declmal places, e$.$g$.,3216.)$

$0-2.$ If you apply the payback criterion, which investment will you choose?

Project A

Project B

b$-1.$ What is the discounted payback period for each project? $($Do not round

Intermedlate 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? $($Do not round Intermedlete calculatlons 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? $($Do not round Intermedlate colculatlons and

enter your answers as a percent rounded to $2$ decimal ploces, e$.$g$.,32\mathrm{.}16.)$d$-1.$ What is the IRR for each project? $($Do not round Intermedlate colculatlons 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? $($Do not round Intermedlate

calculations and round your answers to $3$ decimal places, e$.$g$.,32\mathrm{.}161.)$

e$-2.$ 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 B