Question: Consider the following two mutually exclusive projects: Year 0 1 2 3 4 Cash Flow (A) -$237,213 27,100 50,000 55,000 395,000 Cash Flow (B) -$15,542




Consider the following two mutually exclusive projects: Year 0 1 2 3 4 Cash Flow (A) -$237,213 27,100 50,000 55,000 395,000 Cash Flow (B) -$15,542 5,525 8,666 13,004 8,363 Whichever project you choose, if any, you require a 6 percent return on your investment. a. What is the payback period for Project A? 3.27 years b. What is the payback period for Project B? 2.21 years c. What is the discounted payback period for Project A? d. What is the discounted payback period for Project B? 2.35 years e. What is the NPV for Project A? f. What is the NPV for Project B? g. What is the IRR for Project A? h. What is the IRR for Project B? i. What is the profitability index for Project A? j. What is the profitability index for Project B
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