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28 Sep 2019
Consider the following two mutually exclusive projects:
Year Cash Flow (A) Cash Flow (B) 0 â$ 416,000 â$ 35,500 1 48,500 19,500 2 57,500 14,200 3 74,500 14,100 4 531,000 10,900
The required return on these investments is 12 percent.
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.)
Payback period Project A years Project B years
b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Net present value Project A $ Project B $
c. What is the IRR for each project? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Internal rate of return Project A $ Project B $
d. 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.)
Profitability index Project A Project B
Consider the following two mutually exclusive projects:
Year | Cash Flow (A) | Cash Flow (B) | ||
0 | â$ | 416,000 | â$ | 35,500 |
1 | 48,500 | 19,500 | ||
2 | 57,500 | 14,200 | ||
3 | 74,500 | 14,100 | ||
4 | 531,000 | 10,900 | ||
The required return on these investments is 12 percent.
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.)
Payback period | ||
Project A | years | |
Project B | years | |
b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Net present value | ||
Project A | $ | |
Project B | $ | |
c. What is the IRR for each project? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Internal rate of return | ||
Project A | $ | |
Project B | $ | |
d. 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.)
Profitability index | ||
Project A | ||
Project B | ||
dcht24111997Lv10
16 Apr 2023
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Tod ThielLv2
28 Sep 2019
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