Question: using excel Exercises 1. Consider the following two mutually exclusive projects. Whichever project vo chose, if any, you require a return of 9% on your
Exercises 1. Consider the following two mutually exclusive projects. Whichever project vo chose, if any, you require a return of 9% on your investment. (125 POINTS) Year Cash Flow A $420,000 $53,000 $72,000 $45,000 $560,000 Cash Flow B -$89,000 $41,000 $20,000 $15,000 $68,000 N a. If you apply the payback criteria, which investment will you choose? b. If you apply the NPV criteria, which investment will you choose? c. If you apply the IRR criteria, which investment will you choose? d. If you apply the profitability index criteria, which investment will you choose? e. Which project would you finally choose? Why? Show transcribed image text
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