npv

irr

should accept or reject nd why

Exercise 7 (20 points) You are considering these two mutually exclusive projects A and B. 14 Year 0 1 23 2 4 Project A $(9,000) $4,000 $3,000 $4,000 $2,000 Project B $(9,000) $2,000 $3,000 $4,000 $5,000 Calculate the NPV of each project if the estimated opportunity cost of capital is 13%. Should you accept or reject these projects? Why? (5 Points) 16 Calculate the Profitability index of each project. Should you accept or reject these projects? Why? (4 Points) Enter your answer 17 Calculate the payback period of each project [(4 Points) Enter your