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 15%.




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 15%. using this information, answer the questions below: Year Project A Project B (390,000) (62,000) 0 1 54,000 28,000 2 74,000 26,000 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? Enter the letter "A" or "B" only. Suo 20,oo 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? Enter the letter "A" or "B" only. C) Calculate the Net Present Value for each project. Round to no decimals. Do not enter dollar signs, spaces or commas. Project Project B only. C) Calculate the Net Present Value for each project. Round to no decimals. Do not enter dollar signs, spaces or commas. Project A Project B D) Based on the result of the net present value calculation, which project would you recommend? Enter the letter "A" or "B" only. E) Calculate the Profitability Index for each project. Round to two decimals. Project A Project B F) Based on the result of the profitability index calculation, which project would you Project B D) Based on the result of the net present value calculation, which project would you recommend? Enter the letter "A" or "B" only. E) Calculate the Profitability Index for each project. Round to two decimals. Project A Project B F) Based on the result of the profitability index calculation, which project would you recommend? Enter the letter "A" or "B" only
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