Question: Problem 3 (26 marks) You have been provided the follow information for a mutually exclusive capital budgeting problem (all cash flows are expressed in dollars

 Problem 3 (26 marks) You have been provided the follow information

Problem 3 (26 marks) You have been provided the follow information for a mutually exclusive capital budgeting problem (all cash flows are expressed in dollars ($)) Project A Project B Period Cash Flow Period Cash low 0 -430,000 230,000 179,000 124,000 94,000 0 430,000 70,000 138,000 3 240,000 260,000 The company has a required rate of return of 12 percent. Clearly label your work and show your calculations! 1. Calculate the payback period for both projects. (4 marks) 2. Calculate the discounted payback period for each of the projects. (4 marks) 3. Calculate the net present value for each of the projects. (4 marks) 4. Calculate the profitability index for each of the projects. (4

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