Question: Consider the following two mutually exclusive projects: Year 0 AWNO Cash Flow (A) Cash Flow (B) -$63,000 -$235,000 35,000 25,000 27,000 70,000 25,000 70,000 41,000

Consider the following two mutually exclusive projects: Year 0 AWNO Cash Flow (A) Cash Flow (B) -$63,000 -$235,000 35,000 25,000 27,000 70,000 25,000 70,000 41,000 320,000 The required return on these investments is 10 percent Required: (a) What is the payback period for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Payback period Project A years Project B years (b) What is the NPV for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g.,32.16).) Net present value Project A $ Project B (c) What is the IRR for each project? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Internal rate of return % Project A Project A Project B Payback period years years (b) What is the NPV for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g.,32.16).) Net present value Project A Project B u (c) What is the IRR for each project? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g. 32.16).) Internal rate of return Project A % Project B (d)What is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 3 decimal places (e.g., 32.161).) Profitability index Project A Project B (e)Based on your answers in (a) through (d), which project will you finally choose? (Click to select)
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