Consider the following two mutually exclusive projects: |
Year | Cash Flow (A) | Cash Flow (B) |
0 | –$285,537 | –$14,875 |
1 | 28,200 | 4,193 |
2 | 59,000 | 8,632 |
3 | 52,000 | 13,431 |
4 | 396,000 | 8,922 |
Whichever project you choose, if any, you require a 6 percent return on your investment. |
(e) | What is the NPV for Project A? |
(Click to select)$146,378.68$155,433.03$150,905.86$143,360.56$158,451.15 |
(f) | What is the NPV for Project B ? |
(Click to select)$15,862.45$14,653.88$14,351.74$15,560.31$15,107.1 |
(g) | What is the IRR for Project A? |
(Click to select)19%19.4%21%20%20.6% |
(h) | What is the IRR for Project B? |
(Click to select)37.83%39%40.17%40.95%37.05% |
(i) | What is the profitability index for Project A? |
(Click to select)1.6051.5741.4521.4831.528 |
(j) | What is the profitability index for Project B? |
(Click to select)2.1162.0161.9551.9152.076 |
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