Question: 6. Consider the following two mutually exclusive projects (F and G). Project F - $ 8,500 Year 0 1 2 3 IRR 1,620 3,500 6,080

6. Consider the following two mutually exclusive projects (F and G). Project F - $ 8,500 Year 0 1 2 3 IRR 1,620 3,500 6,080 12.36% Project G -$ 10,620 7,000 4,120 1,660 12.66% Whichever project you choose, if any, you require a 10 percent return on your investment. a. Calculate the payback period for each project. (4 marks) b. Calculate the net present value (NPV) of each project. (4 marks) C. Based on (a), (b) as well as the given IRR, which project will you finally choose? Explain. (2 marks)

6. Consider the following two mutually exclusive projects (F and G). Whichever project you choose, if any, you require a 10 percent return on your investment. a. Calculate the payback period for each project. ( 4 marks) b. Calculate the net present value (NPV) of each project. ( 4 marks) c. Based on (a), (b) as well as the given IRR, which project will you finally choose? Explain. (2 marks)

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