Consider the following two mutually exclusive projects the


Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$195,070 –$32,040 1 25,800 13,379 2 60,000 11,897 3 50,000 10,634 4 412,000 9,296 Whichever project you choose, if any, you require a 15 percent return on your investment. Required: (a) The payback period for Projects A and B is and years, respectively. (Round your answers to 2 decimal places. (e.g., 32.16)) (b) The discounted payback period for Projects A and B is and years, respectively. (Round your answers to 2 decimal places. (e.g., 32.16)) (c) The NPV for Projects A and B is $ and $ , respectively. (Do not include the dollar sign ($). Round your answers to 2 decimal places, (e.g., 32.16)) (d) The IRR for Projects 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 Projects 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.

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Financial Management: Consider the following two mutually exclusive projects the
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