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

Year Project A Project B

0 $35,000 $38,000

1 19,500 20,500

2 16,000 14,500

3 4,400 16,000

a-1. Calculate the payback period for each project. (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.)

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 16 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

NPV

Project A $

Project B $

b-2. Which, if either, of these projects should be chosen if the appropriate discount rate is 16 percent?

Project A

Project B

Both projects

Neither project