Consider the following two mutually exclusive projects:
Year
Cash Flow (A)
Cash Flow (B)
1
62234
-$ 417,000
-$ 36,000
48,000
19,600
58,000
14,100
14,600
11,400
75,000
532,000
The required return on these investments is 13 percent.
a. What is the payback period for each project?
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.
b.
What is the NPV for each project?
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.
c. What is the IRR for each project?
Note: Do not

Consider the following two mutually exclusive projects:

Year Cash Flow (A) Cash Flow (B)
0 −$ 420,000 −$ 37,500
1 46,500 19,900
2 59,500 13,800
3 76,500 16,100
4 535,000 12,900
The required return on these investments is 10 percent.

What is the payback period for each project?

Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.

What is the NPV for each project?

Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.

What is the IRR for each project?

Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.

What is the profitability index for each project?

Note: Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.

Based on your answers in (a) through (d), which project will you finally choose?