Question: Two mutually exclusive projects are under consideration with the details shown. The company's required rate of return for projects of this risk level is 16%.
Two mutually exclusive projects are under consideration with the details shown. The company's required rate of return for projects of this risk level is 16%. using this information, answer the questions below: Year Project A Project B 0 (390,000) (62,000) 1 54,000 28,000 2 78,000 27,000 3 69,000 23,500 4 444,000 18,600
A) Calculate the payback period for each project. Round to two decimals. Project A Project B
B) Based on the result of the payback calculation, which project would you recommend?
C) Calculate the discounted payback period for each project. Round to two decimals. Project A Project B D) Based on the result of the discounted payback calculation, which project would you recommend?
E) Calculate the Net Present Value for each project. Round to two decimals, no dollar signs, no commas. Project A Project B
F) Based on the result of the net present value calculation, which project would you recommend?
G) Calculate the Profitability Index for each project. Round to two decimals. Project A Project B
H) Based on the result of the profitability index calculation, which project would you recommend?
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