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Saved Problem 9-17 Comparing Investment Criteria (LO1, 2, 3, 5, 7) Consider the following two mutually exclusive projects: Year Cash Flow 0 Cash Flow (B)

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Saved Problem 9-17 Comparing Investment Criteria (LO1, 2, 3, 5, 7) Consider the following two mutually exclusive projects: Year Cash Flow 0 Cash Flow (B) $48.000 24,400 22,400 19,900 15.000 $346,000 49,000 69,000 69,000 444,000 2 nces 4 Whichever project you choose. If any, you require a return of 16 percent on your investment a-1 What is the payback period for each project? (Do not round lintermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) years Project A Project B years 2-2lf you apply the payback criterion, which investment will you choose? O Project A O Project B b-1 What is the discounted payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) years Project A Project B years b-2if you apply the discounted payback criterion, which investment will you choose? O Project A O Project B c-1 What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Saved c-1 What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Project A Project B c-2 If you apply the NPV criterion, which investment will you choose? O Project A O Project B d-1 What is the IRR for each project? (Do not round Intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Project A Project B % d-21f you apply the IRR criterion, which investment will you choose? O Project A O Project B e-1 What is the profitability index for each project? (Do not round intermedio calculations and round your answers to 3 decimal places, e.g., 32.161.) Project A Project B e-2 If you apply the profitability index criterion, which investment will you choose? O Project A O Project B f. Based on your answers in (a) through (e), which project will you finally choose

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