Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$426,000 –$40,500 1 43,500 20,500 2 62,500 13,200 3 79,500 19,100 4 541,000 15,900 The required return on these investments is 12 percent. a. What is the payback period for each project?(Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. What is the NPV for each project?(Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. What is the IRR for each project?(Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) d. What is the profitability index for each project?(Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) e. Based on your answers in (a) through (d), which project will you finally choose?

Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$426,000 –$40,500 1 43,500 20,500 2 62,500 13,200 3 79,500 19,100 4 541,000 15,900 The required return on...

Consider the following two mutually exclusive projects:


The required return on these investments is 12 percent.

a.	What is the payback period for each project?(Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
b.	What is the NPV for each project?(Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
c.	What is the IRR for each project?(Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
d.	What is the profitability index for each project?(Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.)
e.	Based on your answers in (a) through (d), which project will you finally choose?

Jun 05, 2022