Question
Tyson is considering 2 alternative investments (A and B). The cost of each is $100,000. The annual net cash flows for the 5 year investment
Tyson is considering 2 alternative investments (A and B). The cost of each is $100,000. The annual net cash flows for the 5 year investment are:
Year | Investment A | Investment B |
1 | 20,000 | $10,000 |
2 | 30,000 | 60,000 |
3 | 40,000 | 60,000 |
4 | 40,000 | 20,000 |
5 | 30,000 | 10,000 |
Answer the following:
Payback period for Alternative 'A'[Q1] format: x.xx
Payback period for Alternative 'B'[Q2] format: x.xx
NPV for Alternative 'A' at 10% discount rate[Q3] format: $xx,xxx
NPV for Alternative 'B' at 10% discount rate[Q4] format: $xx,xxx
IRR for Alternative 'A'[Q5] format: xx.xx%
IRR for Alternative 'B'[Q6] format: xx.xx%
Profitability Index Alternative 'A'[Q7] format: x.xx
Profitability Index Alternative 'B'[Q8] format: x.xx
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