Question: Help Save & CH Consider the following two mutually exclusive projects: 21 Year 0 1 10 points Cash Flow (A) -$390,000 54,000 74,000 69,000 444,000




Help Save & CH Consider the following two mutually exclusive projects: 21 Year 0 1 10 points Cash Flow (A) -$390,000 54,000 74,000 69,000 444,000 Cash Flow (B) -$ 62,000 28,000 26,000 23,500 18,600 2 3 4 eBook Whichever project you choose, if any, you require a 15% return on your investment Print a-1. What is the payback period for each project? (Round the final answers to 2 decimal places.) Payback Period years Project A Project B years a-2. If you apply the payback criterion, which investment will you choose? O Project A O Project B we Mc Graw Hill w O LO 12 MacBook Pro Help Save & Exit Saved Subm nment #30 Check my work 21 D-1. wnat is the aiscountea payback period for each project? (Do not rouna intermediate calculations. Hound the final answers to 2 decimal places.) Discounted Payback Period years Project A Project B years Book b-2. If you apply the discounted payback criterion, which investment will you choose? Print O Project A O Project B c-1. What is the NPV for each project? (Do not round Intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.) NPV Project A Project B c-2. If you apply the NPV criterion, which investment will you choose? Prey 21 of 36 !!! Next > Chec 21 C-2. It you apply the nv criterion, which investment will you chooser O Project A O Project B 10 points d-1. What is the IRR for each project? (Round the final answers to 2 decimal places.) eBook IRR Print Project 1 Project B d-2. If you apply the IRR criterion, which investment will you choose? O Project A Project B e-1. What is the profitability index for each proje? (Do not round intermediate calculation. Round the final answers to 3 decima places.) Profitability Index Index MC Graw Hill W ROA 12 MacBook Pro 21 U Project e-1. What is the profitability index for each project? (Do not round Intermediate calculation. Round the final answers to 3 decimal places.) D joints Profitability Index Project A Project D eBook Print e-2. If you apply the profitability index criterion, which investment will you choose? O Project A Project B f. Based on your answers in (a) through (e), which project will you finally choose? Project A Project B MC Graw MacBook Pro
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
