Question: Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$275,000 -$60,000 1 34,000 31,900 2 49,000 30,100 3 25,000 17,300

 Consider the following two mutually exclusive projects: Year Cash Flow (A)
Cash Flow (B) -$275,000 -$60,000 1 34,000 31,900 2 49,000 30,100 3

Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$275,000 -$60,000 1 34,000 31,900 2 49,000 30,100 3 25,000 17,300 4 325,000 16,200 ON The required return on these investments is 10 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 % 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 Intermedlate 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 acceptance % %

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