Question: Westion Help Choosing between two projects with acceptable payback periods Shell Camping Gear, Inc., is considering two mutually exclusive projects. Each requires an initial investment



Westion Help Choosing between two projects with acceptable payback periods Shell Camping Gear, Inc., is considering two mutually exclusive projects. Each requires an initial investment of $140,000 John Shell president of the company, has set a maximum payback period of 4 years. The after-tax cash inflows associated with each project are shown in the following table: a. Determine the payback period of each project b. Because they are mutually exclusive, Shell must choose one. Which should the company invest in? a. The payback period of project Als years. (Round to two decimal places.) Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Cash inflows (CF) Year Project A Project B 1 $20,000 $50,000 $30,000 $40,000 3 $40,000 $30,000 4 $50,000 $20,000 5 $20,000 $20,000 Print Done Net present value Using a cost of capital of 12%, calculate the not present value for the project shown in the following table and indicate whether it is acceptable, The net present value (NPV) of the project is $. (Round to the nearest cent.) (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Initial investment (CF) Year () 1 2 3 4 5 6 - 1.152,000 Cash inflows (CF) $75,000 $137,000 $187,000 $258,000 $318,000 $376,000 $271,000 $104,000 $48,000 $24,000 7 8 9 10 Print Done HOR
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