Maxwell Software, Inc., has the following mutually exclusive projects.

Year

Project A

Project B

0

$21,000

$24,000

1

12,500

13,500

2

9,000

10,000

3

3,000

9,000

a-1.

Calculate the payback period for each project.

Payback period

Project A ________________years

Project B _________________years

a-2.

Which, if either, of these projects should be chosen?

Project A

Project B

Both projects

Neither project

b-1.

What is the NPV for each project if the appropriate discount rate is 17 percent?

NPV

Project A

$

Project B

b-2.	Which, if either, of these projects should be chosen if the appropriate discount rate is 17 percent?

$

Project A

Project B

Both projects

Neither project