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

Year

Project A

Project B

0

$32,000

$35,000

1

18,000

19,000

2

14,500

13,000

3

4,100

14,500

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 15 percent?

NPV

Project A

$

Project B

$

b-2.

Which, if either, of these projects should be chosen if the appropriate discount rate is 15 percent?

	Project A
	Project B
	Both projects
	Neither project