Year 1 2 3 Cash Flow (A) Cash Flow (B) -$245,000 -$53,000 34,000 31,900 49,000 21,800 51,000 17,300 325,000 16,200 The required return on these investments is 13 percent. a. What is the payback period for each project? (Do not round intermediate calculatic and round your answers to 2 decimal places, e.g., 32.16.) b. What is the NPV for each project? (Do not round intermediate calculations and rour your answers to 2 decimal places, e.g., 32.16.) 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.) 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.) e. Based on your answers in (a) through (d), which project will you finally choose? a. years years Project A Project B b. Project A Project B Project A Project B d. Project A Project B e. Project acceptance c. % %
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
