Novell, Inc., has the following mutually exclusive projects. ...
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Finance
Novell, Inc., has the following mutually exclusive projects.
Year
Project A
Project B
0
$21,000
$24,000
1
12,500
13,500
2
9,000
10,000
3
3,000
9,000
a-1.
Calculate the payback period for each project. (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.)
a-2.
If the company's payback period is two years, which, if either, of these projects should be chosen?
Project A
Project B
Both projects
Neither project
b-1.
What is the NPV for each project if the appropriate discount rate is 17 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
b-2.
Which, if either, of these projects should be chosen if the appropriate discount rate is 17 percent?
Project A
Project B
Both projects
Neither project
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