Question

Consider the following two mutually exclusive projects:    Year Cash Flow (A) Cash Flow (B) 0...

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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