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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