Consider the following two mutually exclusive projects:

Year	Cash Flow (A)	Cash Flow (B)
0	$40,000	$180,000
1	25,000	15,000
2	22,000	45,000
3	20,000	50,000
4	15,000	275,000

The required return on these investments is 11 percent.

Required:
(a)	What is the payback period for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

	Payback period
Project A	years
Project B	years

(b)	What is the NPV for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g.,32.16).)

	Net present value
Project A	$
Project B	$

(c)	What is the IRR for each project? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

	Internal rate of return
Project A	%
Project B	%

(d)	What is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 3 decimal places (e.g., 32.161).)

	Profitability index
Project A
Project B

(e)	Based on your answers in (a) through (d), which project will you finally choose?
	(Click to select) Project A Project B

Year	Cash Flow
0		$	12,000
1			4,500
2			6,000
3			6,600
4			4,800
5			4,100

Requirement 1:

The company uses an interest rate of 16 percent on all of its projects. In the table below, show the modified cash flows and calculate the modified internal rate of return (MIRR) using the "combination" approach. (Do not round intermediate calculations. Negative amounts should be indicated with a minus sign. Round your answers to 2 decimal places (e.g., 32.16).)

Year	Combination Approach
0	$
1	$
2	$
3	$
4	$
5	$
MIRR	%