Question: Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $218,006 $15,742 1 28,000 5,304

Consider the following two mutually exclusive projects:

  

Year Cash Flow (A) Cash Flow (B)
0 –$218,006        –$15,742         
1 28,000        5,304         
2 57,000        8,103         
3 56,000        13,294         
4 392,000        9,377         

  
Whichever project you choose, if any, you require a 6 percent return on your investment.
(e) What is the NPV for Project A?



  (Click to select)   $205,825.37   $216,658.29   $227,491.2   $210,158.54   $223,158.04
(f) What is the NPV for Project B ?



  (Click to select)   $14,309.64   $15,062.78   $14,610.89   $15,514.66   $15,815.91

  

(g) What is the IRR for Project A?



  (Click to select)   28.5%   30%   31.5%   29.1%   30.9%
(h) What is the IRR for Project B?



  (Click to select)   38%   39.14%   36.86%   36.1%   39.9%
(i) What is the profitability index for Project A?



  (Click to select)   2.054   1.994   1.934   1.894   2.094
(j) What is the profitability index for Project B?



  (Click to select)   2.016   2.055   1.898   1.859   1.957


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