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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