Question: Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -300,000 -300,000 1 40,000 25,000 2 140,000 60,000 3 260,000

Consider the following two mutually exclusive projects:

Year Cash Flow (A) Cash Flow (B)
0 -300,000 -300,000
1 40,000 25,000
2 140,000 60,000
3 260,000 80,000
4 300,000 700,000

You require a 14 percent return on your investment.

The payback period for Projects A and B is and years, respectively. (Round your answers to 2 decimal places. (e.g., 32.16))

The NPV for Projects A and B is and , respectively. (Round your answers to 2 decimal places and include the separator (comma) in your answers. (e.g., 123,456,789.16))

The IRR for Projects A and B is % and % , respectively. (Do not include the percentage sign (%). Round your answers to 2 decimal places. (e.g., 32.16))

You will choose project ? . (Answer in capital letter (e.g., A))

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