Question

Consider the following two mutually exclusive projects:

Year	Cash Flow (A)				Cash Flow (B)
0	–$	364,000			–$	52,000
1		46,000				25,000
2		68,000				22,000
3		68,000				21,500
4		458,000				17,500

Whichever project you choose, if any, you require a return of 11 percent on your investment.

b-1. What is the discounted payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
  

c-1. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
  

e-1. What is the profitability index for each project? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.)
  

Answer 1