Question: Whichever project you choose, if any, you require a return of 1 5 percent on your investment. 1 . a . What is the payback
Whichever project you choose, if any, you require a return of percent on your investment.
aWhat is the payback period for each project?
Project A years
Project B years
bif you apply the payback criterion, which investment will you choose?
Project A
or
Project B
cWhat is the discounted payback period for each project?
Project A years
Project B years
dIf you apply the discounted payback criterion, which investment will you choose?
Project A
or
Project B
eWhat is the NPV for each project?
Project A
Project B
fIf you apply the NPV criterion, which investment will you choose?
Project A
or
Project B
gWhat is the IRR for each project?
Project A
Project B
hIf you apply the IRR criterion, which investment will you choose?
Project A
or
Project B
iWhat is the profitability index for each project?
Project A
Project B
jIf you apply the profitability index criterion, which investment will you choose?
Project A
or
Project B
kBased on your answers in a through e which project will you finally choose?
Project A
or
Project B
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