In: Finance
Consider the following two mutually exclusive projects: |
Year | Cash Flow (A) | Cash Flow (B) |
0 | –$219,656 | –$15,258 |
1 | 29,700 | 4,232 |
2 | 57,000 | 8,482 |
3 | 57,000 | 13,890 |
4 | 424,000 | 9,899 |
Whichever project you choose, if any, you require a 6 percent return on your investment. |
a. What is the payback period for Project A? |
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b. What is the payback period for Project B? |
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c. What is the discounted payback period for Project A? |
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d. What is the discounted payback period for Project B? |
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e. What is the NPV for Project A? |
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f. What is the NPV for Project B ? |
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g. What is the IRR for Project A? |
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h. What is the IRR for Project B? |
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i. What is the profitability index for Project A? |
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j. What is the profitability index for Project B? |
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