Question: Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $ 418,000 $ 36,500 1 47,500 19,700 2 58,500 14,000

Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 $ 418,000 $ 36,500 1 47,500 19,700 2 58,500 14,000 3 75,500 15,100 4 533,000 11,900 The required return on these investments is 14 percent. What is the payback period for each project? What is the NPV for each project? What is the IRR for each project? What is the profitability index for each project? Based on your answers in (a) through (d), which project will you finally choose

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