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

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Finance

Consider the following two mutually exclusive projects:

Year Cash Flow (A) Cash Flow (B)

0. $ 291,000 $ 41,600

1. 37,000 20,000

2 55,000 17,600

3. 55,000 17,200

4. 366,000 14,000

What is the payback period for each project?

What is the discounted payback period for each project?

What is the NPV for each project?

What is the IRR for each project?

What is the profitability index for each project?

Whichever project you choose, if any, you require a return of 11 percent on your investment.

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