Question: Project A req return 0.12 1 2 3 4 5 FCF -2,100 350 700 800 750 525 Project B req return 0.105 1 2 3
| Project A | |||||||
| req return | 0.12 | ||||||
| 1 | 2 | 3 | 4 | 5 | |||
| FCF | -2,100 | 350 | 700 | 800 | 750 | 525 | |
| Project B | |||||||
| req return | 0.105 | ||||||
| 1 | 2 | 3 | 4 | 5 | 6 | ||
| FCF | -100,000 | -15000 | 15000 | 25000 | 35000 | 45000 | 55000 |
1. What is the NPV for Project A? (to the nearest cent)
2. What is the IRR for Project A? (Remember to use decimals and not answer in percents for all questions asking for interest rates.)
3. What is the Profitability Index for Project A? (to the second decimal place)
4. What is the Payback period for Project A?
7. What is the NPV for Project B? (To the nearest cent.)
8. What is the IRR for Project B? (Remember to not use percents.)
9. What is the Profitability Index for Project B? (To the second decimal place.)
10. What is the Payback period for Project B?
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