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

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Consider the following two mutually exclusive projects: YearCash Flow (A) Cash Flow (B) 0 –$ 422,000 –$ 38,500 1 45,500 20,1002 60,500 13,600 3 77,500 17,100 4 537,000 13,900 The requiredreturn on these investments is 13 percent. a. What is the paybackperiod for each project? (Do not round intermediate calculationsand round your answers to 2 decimal places, e.g., 32.16.) Paybackperiod Project A Project B b. What is the NPV for each project? (Donot round intermediate calculations and round your answers to 2decimal places, e.g., 32.16.) Net present value Project A Project Bc. What is the IRR for each project? (Do not round intermediatecalculations and enter your answers as a percent rounded to 2decimal places, e.g., 32.16.) Internal rate of return Project AProject B d. What is the profitability index for each project? (Donot round intermediate calculations and round your answers to 3decimal places, e.g., 32.161.) Profitability index Project AProject B e. Based on your answers in (a) through (d), whichproject will you finally choose?

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YearProject 1Cumulative Cash flowProject 2Cumulative Cash See Answer

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Consider the following two mutually exclusive projects: YearCash Flow (A) Cash Flow (B) 0 –$ 422,000 –$ 38,500 1 45,500 20,1002 60,500 13,600 3 77,500 17,100 4 537,000 13,900 The requiredreturn on these investments is 13 percent. a. What is the paybackperiod for each project? (Do not round intermediate calculationsand round your answers to 2 decimal places, e.g., 32.16.) Paybackperiod Project A Project B b. What is the NPV for each project? (Donot round intermediate calculations and round your answers to 2decimal places, e.g., 32.16.) Net present value Project A Project Bc. What is the IRR for each project? (Do not round intermediatecalculations and enter your answers as a percent rounded to 2decimal places, e.g., 32.16.) Internal rate of return Project AProject B d. What is the profitability index for each project? (Donot round intermediate calculations and round your answers to 3decimal places, e.g., 32.161.) Profitability index Project AProject B e. Based on your answers in (a) through (d), whichproject will you finally choose?