Computation of npv-irr-profitability index-payback period

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Reference no: EM1370260

The following data is presented on two mutually exclusive projects under consideration by the XYZ Company:

Year Project A Project B

0 -30,000 -50,000
1 10,000 15,000
2 10,000 15,000
3 10,000 15,000
4 10,000 15,000

The cost of capital is 10%.

Compute the following values for each project using the time value tables and Microsoft Excel.

A) NPV

B) IRR (round to the nearest whole percentage using Microsoft Excel "IRR" function.)

C) Profitability index

D) Payback period

Reference no: EM1370260

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