Question: Consider the following two mutually exclusive projects: Consider the following two mutually exclusive projects: Whichewer project you choose, if any, you require a return of
Consider the following two mutually exclusive projects: Consider the following two mutually exclusive projects:
Whichewer project you choose, if any, you require a return of percent on your
irwestment.
a What is the payback period for each project? Do not round intermediate
calculations and round your answers to decimal places, eg
a If you apply the payback criterion, which inwestment will you choose?
Project A
Project
b What is the discounted payback period for each project? Do not round lintermediate
calculations and round your answers to decimal places, eg
bIf you apply the discounted payback criterion, which inwestment will you choose?
Project A
Project
c What is the NPV for each project? Do not round Intermediate calculations and
round your answers to decimal places, eg
c If you apply the NPV criterion, which inwestment will you choose?
Project B
Project A
d What is the IFA for each project? Do not round intermediate calculations. Enter
your answers as a percent rounded to declmal places, eg
dIf you apply the IAR criterion, which irmestment will you choose?
Project A
Project
e What is the proftability index for each project? Do not round intermediate
calculations and round your answers to decimal places, eg
e If you apply the profitability index criterion, which imestment will you choose?
Project A
Project
f Based on your answers in a through c which project will you finally choose?
Whichewer project you choose, if any, you require a return of percent on your
irwestment.
a What is the payback period for each project? Do not round intermediate
calculations and round your answers to decimal places, eg
a If you apply the payback criterion, which inwestment will you choose?
Project A
Project
b What is the discounted payback period for each project? Do not round lintermediate
calculations and round your answers to decimal places, eg
bIf you apply the discounted payback criterion, which inwestment will you choose?
Project A
Project
c What is the NPV for each project? Do not round Intermediate calculations and
round your answers to decimal places, eg
c If you apply the NPV criterion, which inwestment will you choose?
Project B
Project A
d What is the IFA for each project? Do not round intermediate calculations. Enter
your answers as a percent rounded to declmal places, eg
dIf you apply the IAR criterion, which irmestment will you choose?
Project A
Project
e What is the proftability index for each project? Do not round intermediate
calculations and round your answers to decimal places, eg
e If you apply the profitability index criterion, which imestment will you choose?
Project A
Project
f Based on your answers in a through c which project will you finally choose?
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