Question: Consider the following two mutually exclusive projects: Year AWNO 1 2 3 4 Cash Flow (A) Cash Flow (B) -$416,000 -$35,500 48,500 19,500 57,500 14,200

 Consider the following two mutually exclusive projects: Year AWNO 1 2
3 4 Cash Flow (A) Cash Flow (B) -$416,000 -$35,500 48,500 19,500

Consider the following two mutually exclusive projects: Year AWNO 1 2 3 4 Cash Flow (A) Cash Flow (B) -$416,000 -$35,500 48,500 19,500 57,500 14,200 74,500 14,100 531,000 10,900 The required return on these investments is 12 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? The required return on these investments is 12 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 A Project B c. Project A Project B d. Project A Project B % % e. Project A

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