Question: Year Project A Project B 0 -11,000,000 -11,000,000 1 1,000,000 5,250,000 2 2,000,000 4,000,000 3 3,000,000 2,000,000 4 4,000,000 1,000,000 5 5,000,000 1,000,000 Emusk Inc.
| Year | Project A | Project B |
| 0 | -11,000,000 | -11,000,000 |
| 1 | 1,000,000 | 5,250,000 |
| 2 | 2,000,000 | 4,000,000 |
| 3 | 3,000,000 | 2,000,000 |
| 4 | 4,000,000 | 1,000,000 |
| 5 | 5,000,000 | 1,000,000 |
Emusk Inc. is evaluating two mutually exclusive projects. The required rate of return on these projects is 8%.
A. Calculate the internal rate of return for Project B. (Enter percentages as decimals and round to 4 decimals).
B. Calculate the incremental IRR (aka cross-over rate) for the two projects. (Enter percentages as decimals and round to 4 decimals).
C. Calculate the net present value for project A. (Round to 2 decimals)
D. Calculate the profitability index for project A. (Round to 3 decimals)
E. Calculate the payback period for project B. (Round to 3 decimals)
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