Question: Consider the following two mutually exclusive projects Year Cash Flow (A) Cash Flow (B) 0 2 4 -$431,000 41,000 65,000 82,000 546,000 -$43,000 21,000 12,700

 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 2 4 -$431,000 41,000 65,000 82,000 546,000 -$43,000 21,000 12,700 21,600 18,400 The required return on these investments is 12 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 Project B 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 (c) What is the IRR for each project? (Do not round intermediate calculations. Enter your answers 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

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