Question

Hello, i have this assignment i have tried solving it but been hitting road blocks how do i solve this

also, i have the texas BA II PLUS Calculator can you tell me how to solve for this using the fomular approach

Thank you

Questions

Based on the following cash flows, which of the following mutually exclusive project would you choose? You require a 15% return on your investment.

Year	0 (Initial Investment)	1	2	3	4
Project #1	($300,000)	$20,000	$50,000	$50,000	$390,000
Project #2	($40,000)	$19,000	$12,000	$18,000	$10,500

Project #1	Project #2
Payback?	Payback?
Discounted Payback?	Discounted Payback?
NPV?	NPV
IRR?	IRR?
Profitability Index?	Profitability Index?

Answer 1

				Cumulative cash flow		Present value	Cumulative Dis cash flow
	Year	Project 1	Project 2	Project 1	Project 2	PVIF @ 15%	Project 1	Project 2	Project 1	Project 2
	0	-300000	-40000	-300000	-40000	1	(300,000.00)	(40,000.00)	(300,000.00)	(40,000.00)
	1	20000	19000	-280000	-21000	0.869565	17,391.30	16,521.74	(282,608.70)	(23,478.26)
	2	50000	12000	-230000	-9000	0.756144	37,807.18	9,073.72	(244,801.51)	(14,404.54)
	3	50000	18000	-180000	9000	0.657516	32,875.81	11,835.29	(211,925.70)	(2,569.24)
	4	390000	10500	210000	19500	0.571753	222,983.77	6,003.41	11,058.07	3,434.16
							11,058.07	3,434.16
	Payback period 1	3.46	year
	Payback period 2	2.50	year
	Dicounted Payback period 1	3.95	year
	Discounted Payback period 2	3.43	year
	NPV =1		11,058.07
	NPV =2		3,434.16
	IRR 1 =		16.20%
	IRR 2 =		19.50%
	PI 1		1.04
	PI 2		1.09