Question: Consider the following two mutually exclusive projects: YearCash Flow ( A ) Cash Flow ( B ) 0 $ 2 4 5 , 0 0

Consider the following two mutually exclusive projects: YearCash Flow (A)Cash Flow (B)0$245,000$53,000134,00031,900249,00021,800351,00017,3004325,00016,200 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?

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