Question: Firm ABC is evaluating two mutually exclusive projects with the following cashflows: Year 0 1 Project 1 - 43,391 15,851 10,262 24,846 18,973 2 Project

Firm ABC is evaluating two mutually exclusive projects with the following

Firm ABC is evaluating two mutually exclusive projects with the following cashflows: Year 0 1 Project 1 - 43,391 15,851 10,262 24,846 18,973 2 Project 2 -53,437 3,607 12,652 11,896 14,486 51,053 3 4 5 If the discount rate is 12%, calculate the NPV, Payback Period, and Profitability Ratio of each project. Answer: Project 1 Project 2 NPV (round to nearest cents) Payback (round to two decimals) Profitability Ratio (round to two decimals)

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