Consider the following two mutually exclusive projects

year cash flow A cash flow B 0 - 364615 - 16511 1 25700 5156 2 57000 8994 3 51000 13948 4 427000 9956

whichever if any , you require a 6 percent return on investment

Required (a) what is the payback period for project A 3.72 years 3.65 years 3.43 years 3.54 years 3.36 years

(b) what is the payback period for the project B? 2.28years 2.23years 2.17years 2.06years 2.1 year's

(c) what is the discounted payback period for project A? 3.92 years 3.84 years 3.73 years 3.62 years 3.54 years

(d) what is the discounted payback period for project B? 2.38 years 2.31 years 2.43 years 2.2 years 2.24 years

(e) what is the NPV for project A? 91404.66 86834.42 95974.89 94146.8 88662.52

(f) what is the NPV for project B? 15476.23 15157.13 16433.52 15954.87 16752.62

(g) what is the IRR for project A? 13% 12.61% 12.35% 13.39% 13.65%

(h)what is the IRR for project B? 38% 36.86% 39.14% 39.9% 36.1%

(i)what is the profitability index for project A? 1.313 1.188 1.213 1.288 1.251

(j)what is the profitability index for project B? 1.966 1.868 2.025 2.065 1.907

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