Question: Consider the following two mutually exclusive projects: YearCash Flow ( A ) Cash Flow ( B ) 0 $ 3 7 5 , 0 0
Consider the following two mutually exclusive projects: YearCash Flow ACash Flow B$$ Whichever project you choose, if any, you require a return on your investment. a What is the payback period for each project? Round the final answers to decimal places.Payback PeriodProject A yearsProject B years a If you apply the payback criterion, which investment will you choose? multiple choice Project A Project B b What is the discountedpayback period for each project? Do not round intermediate calculations. Round the final answers to decimal places.Discounted Payback PeriodProject A yearsProject B years b If you apply the discounted payback criterion, which investment will you choose? multiple choice Project A Project B c What is the NPV for each project? Do not round intermediate calculations. Round the final answers to decimal places. Omit $ sign in your response.NPVProject A$ Project B$ c If you apply the NPV criterion, which investment will you choose? multiple choice Project A Project B d What is the IRR for each project? Round the final answers to decimal places.IRRProject A Project B d If you apply the IRR criterion, which investment will you choose? multiple choice Project A Project B e What is the profitability index for each project? Do not round intermediate calculation. Round the final answers to decimal places.Profitability IndexProject AProject B e If you apply the profitability index criterion, which investment will you choose? multiple choice Project A Project B f Based on your answers in a through e which project will you finally choose? multiple choice Project A Project B
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