Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 −$ 361,504 −$ 16,050 1 28,700 5,368 2 51,000 8,456 3 53,000 14,000 4 423,000 9,699 Whichever project you choose, if any, you require a 6 percent return on your investment. a. What is the payback period for Project A? b. What is the payback period for Project B? c. What is the discounted payback period for Project A? d. What is the discounted payback period for Project B? e. What is the NPV for Project A? f. What is the NPV for Project B ? g. What is the IRR for Project A? h. What is the IRR for Project B? i. What is the profitability index for Project A? j. What is the profitability index for Project B?

Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 −$ 361,504 −$ 16,050 1 28,700 5,368 2 51,000 8,456 3 53,000 14,000 4 423,000 9,699 Whichever project you choose, if any, you require a 6 percent return on your investment. a. What is the payback period for Project A? b. What is the payback period for Project B? c. What is the discounted payback period for Project A? d. What is the discounted payback period for Project B? e. What is the NPV for Project A? f. What is the NPV for Project B ? g. What is the IRR for Project A? h. What is the IRR for Project B? i. What is the profitability index for Project A? j. What is the profitability index for Project B?

Name: Consider the following two mutually exclusive projects: Year Cash Flow
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Description: Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 −$ 361,504 −$ 16,050 1 28,700 5,368 2 51,000 8,456 3 53,000 14,000 4 423,000 9,699 Whichever project you choose, if any, you require a 6 percent return on y

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 21P

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