Question: Question Consider the following 2 mutually exclusive projects: Cash Flow a Cash Flow b Year 0 -343,000 -50,000 Year 1 52,000 24,700 Year 2 72,00022,700

Question

Consider the following 2 mutually exclusive projects:

Cash Flow a Cash Flow b

Year 0 -343,000 -50,000

Year 1 52,000 24,700

Year 2 72,00022,700

Year 372,000 20,200

Year 4 447,000 15,300

Whichever project you choose if any you require a 16% return on your investment.

b-1What is the discountedpayback period for each project?

c-1What is the NPV for each project?

d-1What is the IRR for each project?

e-1What is the profitability index for each project?

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