Question: Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -$422,000 -$38,500 45,500 20,100 2 60,500 13,600 3 77,500 17,100

 Consider the following two mutually exclusive projects: Year Cash Flow (A)

Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -$422,000 -$38,500 45,500 20,100 2 60,500 13,600 3 77,500 17,100 4 537,000 13,900 1 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

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