13. Consider the end of year cash inflows of the following two investment projects (in $):...

Transcribed Image Text:

13. Consider the end of year cash inflows of the following two investment projects (in $): Year Investment A Investment B 2021 +200,000 +100,000 2022 +400,000 +100,000 2023 +400,000 +100,000 2024 +400,000 +800,000 2025 +600,000 +1,000,000 Both projects require an investment of $1,000,000 at the end of 2020. The required rate of return for both projects is 10%. Complete the following table: Technique Investment A Investment B Payback period Discounted payback period Net present value Internal rate of return Profitability index 13. Consider the end of year cash inflows of the following two investment projects (in $): Year Investment A Investment B 2021 +200,000 +100,000 2022 +400,000 +100,000 2023 +400,000 +100,000 2024 +400,000 +800,000 2025 +600,000 +1,000,000 Both projects require an investment of $1,000,000 at the end of 2020. The required rate of return for both projects is 10%. Complete the following table: Technique Investment A Investment B Payback period Discounted payback period Net present value Internal rate of return Profitability index