Problem $9-17$ Comparing Investment Criteria $($LO$1,2,3,5,7)$

Consider the following two mutuslly exclusive projects:

Whichever project you choose, if any, you require o $15\%$ return on your investment.

a$-1.$ Whot is the poybock period for each project? $($Round the final answers to $2$ decimal places.$)$

a$-2.$ If you opply the poybock criterion, which investment will you choose?

Project A

Project B

b$-1.$ What is the discounted poybock period for each project? $($Do not round Intermedlate calculations. Round the final answers to $2$

decimal places.$)$

b$-2.$ If you opply the discounted poybock criterion, which investment will you choose?

Project A

Project B

c$-1.$ What is the NPV for each project? $($Do not round intermedlate calculations. Round the final answers to $2$ decimal places. Omlt $

sign In your response.$)$

c$-2.$ If you apply the NPV criterion, which investment will you choose?

Project AProblem $9-17$ Comparing Investment Criterla $($LO$1,2,3,5,7)$

Caraider the falawing twe mutaly exaluive prajecta:

Froject :

Froject

Prejace: $A$

Praject $B$

twacimal placka.

Praize: $2$

Prajese $8$

pign in your roporan.$|$

project :

Froject

Praize: $A$

Praies: $B$

$4-1.$ What ia the IRR fer eash praject? $($Reund the final anawara to $2$ decimel placas.$)$

project in

Frodect

$4-2.$ If yau asoly the IPR eriterian, which inveatment will yeu eheeas?

Praject $2$

Prajes: $8$

flaces.$)$

woject

Froject :

If you acoly the grafitatily index eviterian, which inveatmant will yeu eleeasi

Prajest $A$

Prajes: $8$

Praize: $A$

Preject BProblem $2-22$ Calculating Cash Flows $($LO$3)$

Consider the following abbreviated financial statements for Barrle Enterprises:

a$.$ What is owner's equity for $2019$ and $2020?($Omit $ sign In your response.$)$

Owner's equity $2019$

Owner's equity $2820$

b$.$ What is the change in net working capltal for $2020?($Omit $ sign In your response.$)$

Change in NWC

c$1.$ In $2020,$ Barrle Enterprises purchased $$1,956$ In new fixed assets. How much In fixed assets did Barrle Enterprises sell? $($Omit $

sign In your response.$)$

Fixed assets sold

c$2.$ In $2020,$ Barrle Enterprises purchased $$1,956$ in new fixed assets. What is the cash flow from assets for the year? $($The tax rate is

$35\%)($Omit $ sign In your response.$)$

Cash flow from assets

d$1.$ DurIng $2020,$ Barrle Enterprises ralsed $$390$ In new long$-$term debt. How much long$-$term debt must Barrle Enterprises have paid

off during the year? $($Omit $ sign In your response.$)$

Debt retlred

d$2.$ Durlng $2020,$ Barrle Enterprises ralsed $$390$ In new long$-$term debt. What is the cash flow to creditors? $($Omit $ sign In your

response.$)$

Cash flow to creditors

Project B

d$-1.$ What is the IRR for each project? $($Round the final answers to $2$ decimal places.$)$

d$\mathrm{.}2.$ If you spply the IRR criterion, which investment will you choose?

Project A

Project B