Question
*Sorry you have to Zoom in. A.) The payback period of project A is _ years. (Round to two decimal places) - The payback period
*Sorry you have to Zoom in.
A.) The payback period of project A is _ years. (Round to two decimal places)
- The payback period of project B is _ years. (Round to two decimal places)
- According to the payback method, which project should the firm choose? (Select the best answer below)
(A). Project A
(B). Project B
B.) The NPV of project A is $ _ (Round to the nearest cent)
- The NPV of project B is $ _ (Round to the nearest cent)
- According to the NPV method, which project should the firm choose? (Select the best answer below)
(A). Project A
(B). Project B
C.) The IRR of project A is _% (Round to two decimal places)
- The IRR of project B is _% (Round to two decimal places)
- According to the IRR method, which project should the firm choose? (Select the best answer below)
(A). Project A
(B). Project B
D.) Which project will you recommend? (Select the best answer below)
(A). Project A
(B). Project B
OOOOO + PL to DOPICO ar cx P10-21 (similar to) All techniques, conflicting rankings Nicholson Roofing Materials, Inc., is considering two mutually exclusive projects, each with an initial investment of $190,000. The company's board of directors has set a 4-year payback requirement and has set its cost of capital at 9%. The cash inflows associated with the two projects are shown in the following table: D a. Calculate the payback period for each project. Rank the projects by payback period. b. Calculate the NPV of each project. Rank the project by NPV. c. Calculate the IRR of each project. Rank the project by IRR. d. Make a recommendation. i a. The payback period of project Ais L years. (Round to two decimal places Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Cash inflows (CF) Project A Project B $55,000 $85,000 $55,000 $70,000 $55,000 $40,000 $55,000 $40,000 $55,000 $40,000 $55,000 $40,000 Enter your answer in the answer box and then click Check Answer. IRR of proj 9 parts remaining NPV at 0% NPV at 90% IRR Payback PeriodStep by Step Solution
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