1-4

Southern Chicken is considering two projects. Project A consists of creating an outdoor eating area on the unused portion of the restaurant's property. Project B would use that outdoor space for creating a drive-thru service window. When trying to decide which project to accept, the firm should rely most heavily on which one of the following analytical methods? a. profitability index b. internal rate of return c. payback d net present value Use the following information to answer questions 2 through 4. You are analyzing a proposed project and have compiled the following information: What is the net present value of the proposed project? a.-$1, 316.07 b.$1, 252.39 c.$2, 344.69 d. $3, 089.91 What is the profitability index of the proposed project? a. 0.01 b.$1.01 c.$1.35 d.2.65 what is the discount period? a. 2.29 years b.2.65 years c. 2.96 years d. never You are analyzing the following two mutually exclusive projects and have developed the following information. What is the crossover rate? a)12.17 percent b. 13.63 percent c. 14.32 percent d. 14.96 percent