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You have been asked to evaluate the following projects. The discount rate is 7.0% Calculate the NPV, IRR and Profitability Index for Project A. Time
You have been asked to evaluate the following projects. The discount rate is 7.0% Calculate the NPV, IRR and Profitability Index for Project A. Time Project A Project B Project C Project D 0 $ (4,251) $ (1,862) $ (6,180) $ (2,320) 345 126 5,894 346 345 892 243 219 w 345 535 597 2,915 345 3,961 728 340 Project A Project B Project C Project D NPV ? $ 2,493 $ 583 $ 834 IRR 37.8% 14.2% 19.5% Profitability Index (PI) 2.34 1.09 1.36 Required: 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 PI. (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 A/ Blank # 3 Blank # 4 A/
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