Question: Il. Capital Budgeting Analysis: 4. A real estate developer has projects A and B which are mutually exclusive with the following cash flows: CEL CE2
Il. Capital Budgeting Analysis: 4. A real estate developer has projects A and B which are mutually exclusive with the following cash flows: CEL CE2 CF ($15,000) $5,000 ($30,000) 10,000 $8,000 12,000 $12,000 $15,000 If the required rate of return is 6%, then the NPV for project A is , for project B is , and using the NPV criterion, you accept A. $6,912.3840; $2,708.2088; and both project respectively. B. $7,384.1918; $3,365.7272; and project "B" respectively. C. 56,912.3840; $2,708.2088; and project "B" respectively D. $6,912.3840; $2,708.2088; and project "A" respectively. 5. Using the information in question #4, the internal rate of return (IRR) for project A is....., for project B is...., and using the IRR criterion, you accept A, 26.0243% 10.4911%, and both project respectively B. 26.01 34%; 10.4911%; project "B" respectively. C. 26.0243%; 10.4911%; and project "A" respectively. D. 26.0243%; 10.4911%; and project "B" respectively. 6. Project B has the following cash flows: CFo CFi CF2 CF (1,500) 900 400 600 If the required rate of return is 6%, then the payback period for this project is discounted payback period. i.... A. 2 years and 2.5 years respectively. B. 2.33 years and 2.59 years respectively. C. 2.25 years and 2.59 years respectively. D. 2.5 years and 2.49 years respectively. and the
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