Question: Year Project A Project B 0 -320 -340 1 220 40 2 120 100 3 90 180 4 40 300 I=16% 1. What is the

Year

Project A

Project B

0

-320

-340

1

220

40

2

120

100

3

90

180

4

40

300

I=16%

1. What is the discounted payback for A?
2. What is the payback for B?
3. What is the net present value for B?
4. What is the internal rate of return for B?
5. What is modified internal rate of return for A?
6. What is the pofitabilty index for B?
7. What is the crossover rate?
8. If they are independent, an investor should choose _____
9. If they are mutually exclusive, am investor should choose _______ based on NPV
10. If they are mutually exclusive, an investor should choose _________ based on IRR

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