Question 2:

Consider the following two mutually exclusive projects: Year 1 2 3 4 Cash Flow (A) -$321,187 29,300 57,000 57,000 393,000 Cash Flow (B) -$14,967 4,267 8,261 13,353 9,892 Whichever project you choose, if any, you require a 6 percent return on your investment. a. What is the payback period for Project A? b. What is the payback period for Project B? 2 b. What is the payback period for Project B? Skipped c. What is the discounted payback period for Project A? 2 d. What is the discounted payback period for Project B? Skipped e. What is the NPV for Project A? 2 f. What is the NPV for Project B? Skipped 55V g. What is the IRR for Project A? 2. h. What is the IRR for Project B? Skipped i. What is the profitability index for Project A? 2 Skipped j. What is the profitability index for Project B