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Consider the following two mutually exclusive projects:
| Year | Cash flow (A) | Cash flow (B) |
| 0 | -$262,782 | -$27,554 |
| 1 | 27,300 | 10,410 |
| 2 | 51,000 | 11,010 |
| 3 | 51,000 | 10,196 |
| 4 | 393,000 | 10,971 |
Whichever project you choose, if any, you require a 15 percent return on your investment.
Required:
(a) The payback period for project A and B is _____ and _____ years, respectively. (Round your answers to 2 decimal places, e.g. 32.16)
(b) The discounted payback period for project A and B is _____ and _____ years, respectively. (Round your answers to 2 decimal places, e.g. 32.16)
(c) The NPV for project A and B is $_____ and $_____, respectively. (Round your answers to 2 decimal places, e.g. 32.16)
(d) The IRR for project A and B is _____ percent and _____ percent, respectively. (Do not include the percent sign (%). Round your answers to 2 decimal places, e.g. 32.16)
(e) The profitability index for project A and B is _____ and _____, respectively. (Round your answers to 3 decimal places, e.g. 32.161)
(f) Based on your answers in (a) through (e), you will finally choose Project _____.