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What is the payback period for each project

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Reference no: EM133106872

Question - Consider the following two mutually exclusive projects

Year

Cash Flow (A)

Cash Flow (B)

0

-$433,000

-$44,000

1

40,000

21,200

2

66,000

12,500

3

83,000

22,500

4

548,000

19,400

The require return of the investment is 15%.

Required -

1. What is the payback period for each project?

2. What is the NPV for each project?

3. What is the IRR for each project?

4. What is the profitability index for each project?

5. Based on your answer from 1 thru 4 which project will you finally choose?

Reference no: EM133106872

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