In: Finance
Consider the following two mutually exclusive projects: |
Year | Cash Flow (A) | Cash Flow (B) |
0 | –$318,519 | –$15,100 |
1 | 28,000 | 4,120 |
2 | 52,000 | 8,876 |
3 | 52,000 | 13,187 |
4 | 420,000 | 8,835 |
Whichever project you choose, if any, you require a 6 percent return on your investment. |
a. What is the payback period for Project A and Project B?
b. What is the discounted payback period for Project A and Project B?
c. What is the NPV for Project A and Project B?
d. What is the IRR % for Project A and Project B?
e. What is the profitability index for Project A and Project B?