Question: Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) $195,640 26,500 52,000 51,000 390,000 -$16,290 5,293 8,843 13,587 9,577 0

 Consider the following two mutually exclusive projects: Year Cash Flow (A)
Cash Flow (B) $195,640 26,500 52,000 51,000 390,000 -$16,290 5,293 8,843 13,587
9,577 0 2 3 4 Whichever project you choose, if any, you
require a 6 percent return on your investment. a. What is the
payback period for Project A? b. What is the payback period for
Project B? c. What is the discounted payback period for Project A?

Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) $195,640 26,500 52,000 51,000 390,000 -$16,290 5,293 8,843 13,587 9,577 0 2 3 4 Whichever project you choose, if any, you require a 6 percent return on your investment. a. What is the payback period for Project A? b. What is the payback period for Project B? c. What is the discounted payback period for Project A? d. What is the discounted payback period for Project B? e. What is the NPV for Project A? f. What is the NPV for Project B? g. What is the IRR for Project A? h. What is the IRR for Project B? i. What is the profitability index for Project A? j. What is the profitability index for Project B

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