Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$434,000...
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Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$434,000 -$44,500 39,500 21,300 66,500 12,400 83,500 23,100 549,000 19,900 The required return on these investments is 11 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. 32.16.) c. What is the IRR for each project? (Do not round intermediate calculations and e your answers as a percent rounded to 2 decimal places, e.g., 32.16.) 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.) e. Based on your answers in (a) through (d), which project will you finally choose? years a. Project A Project B b. Project A years


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