Reference no: EM132465941

Year Project A Project B Project C Project D

0 -$4,000,000 -$8,000,000 -$6,000,000 -$3,000,000

1 $1,000,000 $1,250,000 $1,500,000 $300,000

2 $1,000,000 $1,250,000 $1,500,000 $500,000

3 $1,000,000 $1,250,000 $2,500,000 $500,000

4 $1,000,000 $1,250,000 $2,500,000 $750,000

5 $800,00 $1,250,000 $750,000

6 $0 $1,250,000 $750,000

7 $800,000 $1,250,000 $750,000

8 $300,000 $1,250,000 $750,000

9 $1,250,000 $750,000

10 $1,250,000 $750,000

Req rate of return is as below for Project A, B, C and D respectively.

A=11.58%

B=8.48%

C=10.03%

D=13.90%

For each project, calculate the NPV, IRR, profitability index (PI) and the payback period. For each capital budgeting decision tool, indicate if the project should be accepted or rejected, assuming that each project is independent of the others. Important Note: All projects must be completed within 6 years or less