Question: Consider the following two mutually exclusive projects: Year Cash Flow ( A ) Cash Flow ( B ) 0 $ 4 3 4 , 0

Consider the following two mutually exclusive projects:
Year Cash Flow (A) Cash Flow (B)
0$ 434,000$ 44,500
139,50021,300
266,50012,400
383,50023,100
4549,00019,900
The required return on these investments is 11 percent.
What is the payback period for each project?
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g.,32.16.
What is the NPV for each project?
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g.,32.16.
What is the IRR for each project?
Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g.,32.16.
What is the profitability index for each project?
Note: Do not round intermediate calculations and round your answers to 3 decimal places, e.g.,32.161.
Based on your answers in (a) through (d), which project will you finally choose?

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