Consider the following cash flows of two mutually exclusive
projects for A-Z Motorcars. Assume the discount rate for both
projects is 12 percent.
Year
AZM
Mini-SUV
AZF
Full-SUV
0
−$500,000
−$850,000
1
330,000
360,000
2
200,000
440,000
3
160,000
300,000
a.
What is the payback period for each project? (Do not
round intermediate calculations and round your answers to 2 decimal
places, e.g., 32.16.)
b.
What is the NPV for each project? (Do not round
intermediate calculations and round your...