Question: Consider the following two mutually exclusive projects: Year 0 1 2 3 4 Cash Flow (A) Cash Flow (B) -$432,000 -$43,500 40,500 21,100 65,500 12,600

 Consider the following two mutually exclusive projects: Year 0 1 2

Consider the following two mutually exclusive projects: Year 0 1 2 3 4 Cash Flow (A) Cash Flow (B) -$432,000 -$43,500 40,500 21,100 65,500 12,600 82,500 22,100 547.000 18,900 DWN The required return on these investments is 13 percent a. What is the payback period for each project? (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? (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? (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? (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? years years a. Project A Project B b. Project Project B C. Project A Project B d. Project A Project B % % e

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