Question: 13:31 Consider the following two mutually exclusive projects: MG 52 VOL Year 0 Cash Flow (A) Cash Flow (B) -$ 429,000 -$ 42,000 1234
13:31 Consider the following two mutually exclusive projects: MG 52 VOL Year 0 Cash Flow (A) Cash Flow (B) -$ 429,000 -$ 42,000 1234 42,000 20,800 64,000 12,900 20,600 17,400 81,000 544,000 The required return on these investments is 11 percent. a. What is the payback period for each project? Note: 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? Note: 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? Note: 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? Note: 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? a. Project A Project B b. Project A Project B c. Project A Project B d. Project A Project B e. years years % %
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