Question: Consider the following two mutually exclusive projects: Year ON Cash Flow (A) -$275,000 34,000 49,000 25,000 325,000 Cash Flow (B) -$60,000 31,900 30,100 17,300 16,200

Consider the following two mutually exclusive projects: Year ON Cash Flow (A) -$275,000 34,000 49,000 25,000 325,000 Cash Flow (B) -$60,000 31,900 30,100 17,300 16,200 WN 3 4 The required return on these investments is 10 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? years years a. Project A Project B b. Project A Project B c. Project A Project B d. Project A Project B e. Project acceptance % %
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