Case 1 Below is series of Cash flows for two mutually exclusive projects (Projects A and B). Please answer each question

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Case 1 Below Is Series Of Cash Flows For Two Mutually Exclusive Projects Projects A And B Please Answer Each Question 1 (57.7 KiB) Viewed 27 times

Please answer the following questions:
What is the discount payback for each?
What is the profitability index for each with 9.0% discount
rate?
What is the internal rate of return for each?
Thank you.
Case 1 Below is series of Cash flows for two mutually exclusive projects (Projects A and B). Please answer each question below for each project where indicated with a green cell. Project A B Year Initial Investment 1 2 3 ($3,500.00) $2,100.00 $1,575.00 $525.00 $157.50 $122.50 $0.00 $0.00 ($3,500.00) ($612.50) ($105.00) $105.00 $612.50 $1,225.00 $2,100.00 $3,937.50 4 5 6 7 What is the payback period for each? 1.89 7.04 If the Payback rule is 4 years, would you consider the project? (Answer Below) yes no What is the Discounted Payback for each $2.86 $6.58 What is the Profitability Index for each with a 9.0% discount rate? (Answer Below) What is the Internal Rate of Return for each? (Answer Below) 15.26% 11.41%