Question: 11 Consider the following two mutually exclusive projects: Cash Flow Cash Flow Year (A) (B) 3342,000 250,500 53,000 24,800 73,000 22,800 73,000 20,300 448,000 15,400




11 Consider the following two mutually exclusive projects: Cash Flow Cash Flow Year (A) (B) 3342,000 250,500 53,000 24,800 73,000 22,800 73,000 20,300 448,000 15,400 AWNO Book Hint Print Whichever project you choose, if any, you require a return of 14 percent on your investment erences a-1 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.) Project A Project B | N| 22 a-2 If you apply the payback criterion, which investment will you choose? Project A nts O Project B eBook b-1 What is the discounted payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Hint Print eferences Project A Project B 3.72 years 2.82 years b-2If you apply the discounted payback criterion, which investment will you choose? Project A C-1 What is the NPV for each project? (Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Soints Project A Project B eBook Hint Print References C-2 if you apply the NPV criterion, which investment will you choose? O Project A Project B d-1 What is the IRR for each project? (Do not round Intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) noints Project A Project B eBook Hint Print References d-2If you apply the IRR criterion, which investment will you choose? Project A O Project B e-1 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.) 20 points Project A Project B eBook Hint Print References e-2 if you apply the profitability index criterion, which investment will you choose? Project A O Project B 1. Based on your answers in (a) through (e), which project will you finally choose? Project A
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