Consider the following two mutually exclusive projects: Year OM 1 2 3 4 Cash Flow...
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Consider the following two mutually exclusive projects: Year OM 1 2 3 4 Cash Flow (A) Cash Flow (B) -$ 211,666 -$ 15,737 26,900 4,795 51,000 8,587 56,000 13,434 402,000 9,580 Whichever project you choose, if any, you require a 6 percent return on your investment. a. What is the payback period for Project A? Payback period b. What is the payback period for Project B? Payback period c. What is the discounted payback period for Project A? Discounted payback period d. What is the discounted payback period for Project B? Discounted payback period e. What is the NPV for Project A? NPV f. What is the NPV for Project B? NPV g. What is the IRR for Project A? IRR h. What is the IRR for Project B? IRR i. What is the profitability index for Project A? Profitability index j. What is the profitability index for Project B? Profitability index
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