Question: Consider the following two mutually exclusive projects: Year Cash Flow ( A ) Cash Flow ( B ) 0 $ 3 5 4 , 0

Consider the following two mutually exclusive projects:
Year Cash Flow (A) Cash Flow (B)
0$ 354,000$ 48,000
141,00023,600
261,00021,600
361,00019,100
4436,00014,200
Whichever project you choose, if any, you require a return of 14 percent on your investment.c-1. What is the NPV for each project? (Do not round Intermedlate calculations and
round your answers to 2 decimal places, e.g.,32.16.)
c. If you apply the NPV criterlon, which Investment will you choose?
Project A
Project B
d- What is the IRR for each project? (Do not round Intermedlate calculations and enter
your answers as a percent rounded to 2 decimal places, e.g.,32.16.)
d- If you apply the IRR criterion, which Investment will you choose?
Project A
Project B
e-1. What is the profitability Index for each project? (Do not round Intermedlate
calculations and round your answers to 3 decimal places, e.g.,32.161.)
 Consider the following two mutually exclusive projects: Year Cash Flow (A)

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