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Hip -I-adada ali miesby Catract_Pracucion J ack_pupst I kamp .com Chzator 12 Homework cand Help Save & Exit Submit Check my work X-treme Vitamin Company is considering two investments, both of which cost $40.000. The cesh flows are es follows: ZHNE Praust a Project D 1 62,000 100.000 punta 3 ,000 15.000 Use Appendix B foran epproximate answer but calculate your finalenswer using the formule end financial calculator methods. 4-1. Celculete the eybeck period for Project and Project 6. (Round your answers to 2 decimal places.) Payback Period Proiect Froject 100 ans! PH-1 2 decimal places recuired. Beforhocs a-2. Which of the two projects should be chosen based on the payback method? Project Project B b-1. Calculate the represent value for Project and Projecte. Assume z cast of capital of 12 percent (Do not round Intermediate calculations and round your final answers to 2 decimal places.) Project Proiecte Net Present Value 1 0.8 b-2. Which of the two projects should be chosen based on the net present value method? < Prev 3 of 10 Next >

I'm having trouble with B-1

Answer 1

07 fic =SUM(D3:06) в D 1 Project A 2 year Cash flows pv@12% Present value 0 $ 40,000.00) 1.0000 $ 40,000.00 1 $ 42,000.00 0.8929 $ 37,500.00 2 $ 22,000.00 0.7972 $ 17,538.27 3 $ 30,000.00 0.7118 $ 21,353.41 NPV $ 36,391.67 H Project B year Cash flows pv@12% Present value 0 $ (40,000.00) 1.0000 $ 40,000.00 1 $ 40,000.00 0.8929 $ 35,714.29 2 $ 21,000.00 0.7972 $ 16,741.07 3 $ 15,000.00 0.7118 $ 10,676.70 NPV $ 23,132.06 9b2 Accept Project A Payback Period Payback Period = 0+40000/42000 0.95 Years 0+40000/40000 1.00 Years 11 a1 12 13 14 a2 15 Accept Project A