Question: Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$245,000 34,000 49,000 51,000 325,000 -$53,000 31,900 21,800 17,300 16,200 1

Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$245,000 34,000 49,000 51,000 325,000 -$53,000 31,900 21,800 17,300 16,200 1 2 4 The required return on these investments is 13 percent. a. What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b.What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. What is the IRR for each project? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) d.What is the profitability index for each project? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) e. Based on your answers in (a) through (d), which project will you finally choose? Project A years . Project B years b. Project A Project B Project A % . Project B % d. Project A Project B Project acceptance
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