Problem $9-17$ Comparing Investment Criteria $[$LO$1,2,3,5,7]$

Consider the following two mutually exclusive projects:

Whichever project you choose, if any, you require a return of $15$ percent on

your investment.

a$-$ What is the payback period for each project? $($Do not round intermediate

calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

a$-$ If you apply the payback criterion, which investment will you choose? $2.$

Project A

Project B

b$-$ What is the discounted payback period for each project? $($Do not round

intermediate calculations and round your answers to $2$ decimal places,

e$.$g$.,32\mathrm{.}16.)$

b$-$ If you apply the discounted payback criterion, which investment will you

choose?

Project A

Project B

c$-$ What is the NPV for each project? $($Do not round intermediate calculations

and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

Answer is complete and correct.

c$.$ If you apply the NPV criterion, which investment will you choose?

Project A

Project B

d$-$ What is the IRR for each project? $($Do not round intermediate calculations

and enter your answers as a percent rounded to $2$ decimal places, e$.$g$.,$

$32\mathrm{.}16.)$

d$-$

If you apply the IRR criterion, which investment will you choose?

Project A

Project B

e$-$ What is the profitability index for each project? $($Do not round intermediate

calculations and round your answers to $3$ decimal places, e$.$g$.,32\mathrm{.}161.)$