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VERSION 3 Required Returns: 1 4 % Year Project 1 Project 2 0 ( $ 1 4 6 , 0 2 5 ) ( $

VERSION 3
Required Returns: 14%
Year Project 1 Project 2
0($146,025)($199,650)
171,87676,927
245,68947,768
343,36262,172
438,61083,556
535,04693,654
What are the NPV's of these two projects?
Project 1 NPV:
[ Select ]
and Project 2 NPV:
[ Select ]
What are the IRR's of these two projects?
Project 1 IRR:
[ Select ]
and Project 2 IRR:
[ Select ]
What are the Payback Periods of these two projects?
Project 1 Payback:
[ Select ]
and Project 2 Payback:
[ Select ]
What are the Profitability Indexes of these two projects?
Project 1 Profitability Index:
[ Select ]
and Project 2 Profitability Index:
[ Select ]
At what discount rate are you indifferent between these two projects; and which project would you choose if discount rates were LOWER than this point?
Crossover Rate:
[ Select ]

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