Question: GIVING THIS DATA, please answer 1 and 2 Questions; Project A payback period = 100,000/25,000 = 4 Years Project B payback period = 100,000/20,000 =

GIVING THIS DATA, please answer 1 and 2 Questions;

Project A payback period = 100,000/25,000 = 4 Years

Project B payback period = 100,000/20,000 = 5 Years

1- go back to short answer above, and using that data calculate NPV for projects A and B using a 10% discount rate.

2-In number 1 above, which project do you pick if they are mutually exclusive? Which do you pick if they are independent and the company has enough funds to do all projects?

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