Consider the following two mutually exclusive
projects:
Year | Cash Flow (A) | Cash Flow (B) | ||
0 | –$ | 426,000 | –$ | 40,500 |
1 | 43,500 | 20,500 | ||
2 | 62,500 | 13,200 | ||
3 | 79,500 | 19,100 | ||
4 | 541,000 | 15,900 | ||
The required return on these investments is 12 percent.
a. What is the payback period for each project?
(Do not round intermediate calculations and round your
answers to 2 decimal places, e.g., 32.16.)
Payback period | ||
Project A | years | |
Project B | years | |
b. What is the NPV for each project?
(Do not round intermediate calculations and round your
answers to 2 decimal places, e.g., 32.16.)
Net present value | ||
Project A | $ | |
Project B | $ | |
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.)
Internal rate of return | ||
Project A | % | |
Project B | % | |
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.)
Profitability index | ||
Project A | ||
Project B |
Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$...
Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$ 354,000 –$ 48,000 1 41,000 23,600 2 61,000 21,600 3 61,000 19,100 4 436,000 14,200 Whichever project you choose, if any, you require a return of 14 percent on your investment. a-1 What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) a-2 If you apply...
Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$356,000 –$40,000 1 31,000 23,000 2 42,000 15,200 3 50,000 14,100 4 445,000 11,200 The required return on these investments is 13 percent. Required: (a) What is the payback period for each project? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Payback period Project A years Project B years (b) What is the NPV for each project? (Do not...
Consider the following two mutually exclusive projects Year Cash Flow (A) Cash Flow (B) -422,000 - 38,500 45,500 60,500 77,500 537,000 20,100 13,600 17,100 13,900 2 The required return on these investments is 13 percent. a. What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Payback period Project A Project B years years b. What is the NPV for each project? (Do not round intermediate calculations...
Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$ 344,000 –$ 49,000 1 51,000 24,600 2 71,000 22,600 3 71,000 20,100 4 446,000 15,200 Whichever project you choose, if any, you require a 15 percent return on your investment. a-1 What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Payback period Project A years Project B years a-2 If...
Consider the following two mutually exclusive projects: Year 0 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 AWN The required return on these investments is 13 percent. a. What is the payback period for each project? (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? (Do not round intermediate calculations and round your answers to 2 decimal...
Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$245,000 –$53,000 1 34,000 31,900 2 49,000 21,800 3 51,000 17,300 4 325,000 16,200 The required return on these investments is 13 percent. a. What is the payback period for each project? (Do not round intermediate calculations 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 round your answers to...
Consider the following two mutually exclusive projects: Year 0 -NM Cash Flow (A) Cash Flow (B) $422,000 -$38,500 45,500 20,100 60,500 13,600 77,500 17,100 537,000 13,900 The required return on these investments is 13 percent. a. What is the payback period for each project? (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? (Do not round intermediate calculations and round your answers to 2 decimal places,...
Consider the following two mutually exclusive projects: Year O 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 nces The required return on these investments is 13 percent. a. What is the payback period for each project? (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? (Do not round intermediate calculations and round your answers to 2 decimal places,...
Consider the following two mutually exclusive projects: Year O-NM Cash Flow (A) Cash Flow (B) $417,000 $36.000 48,000 19,600 58,000 14,100 75,000 14,600 532,000 11,400 The required return on these investments is 13 percent. a. What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g.,...
Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$ 340,000 –$ 51,500 1 55,000 25,000 2 75,000 23,000 3 75,000 20,500 4 450,000 15,600 Whichever project you choose, if any, you require a 16 percent return on your investment. a-1 What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Payback period Project A years Project...