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You have been asked to evaluate the following projects. The discount rate is Calculate the NPV, IRR and Profitability Index for Project A. NPV

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You have been asked to evaluate the following projects. The discount rate is Calculate the NPV, IRR and Profitability Index for Project A. NPV IRR Profitability Index (PI) Required: 13.0% Time Project A Project B Project C Project D 0.1234 0 $ (1,950) $ (5,053) $ (3,924) $ (1,277) 850 899 2,963 7,179 850 926 150 903 850 583 787 2,398 850 2,092 587 999 Project A Project B Project C Project D ? $ (1,845) $ (279) $ 8,058 ? -3.9% 8.1% 480.3% ? 0.63 0.93 7.31 What is the Project A's NPV? (Round your answer to the nearest dollar [$1,432]). Rank the projects by IRR. (Use capital letters without commas or spaces [e.g. BDAC]) Rank the projects by Pl. (Use capital letters without commas or spaces [e.g. BDAC]) If the projects are mutually exclusive what project should you accept? Blank # 1 Blank # 2 Blank # 3 Blank # 4 A A A/

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