(NPV, PI, and IRR calculations) You are considering two independent projects, project A and project B. The initial cash

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Npv Pi And Irr Calculations You Are Considering Two Independent Projects Project A And Project B The Initial Cash 1 (14.71 KiB) Viewed 36 times

Calculate the NPV​, PI ​and IRR for each project and
indicate if the project should be accepted.
a. What is the NPV of project​ A?​(Round to the nearest​
cent.)
What is the NPV of project​ B? ​(Round to the
nearest​cent.)
Based on the NPV criterion​, project A should
be(accepted/rejected) because its NPV is (positive/negative)and
project B should be (accepted/rejected) because its NPV is
(positive/negative)​(Select from the​drop-down menus.)
b. What is the PI of project​ A?​(Round to three
decimal​ places.)
What is the PI of project​ B?​(Round to three
decimal​places.)
Based on the PI criterion​,project A should be
(accepted/rejected) because its PI is (more/less) than 1.00 and
project B should be (accepted/rejected) because its PI is
(more/less) than 1.00. ​(Select from the​ drop-down
menus.)
c. What is the IRR of project​ A?​(Round to two decimal​
places.)
What is the IRR of project​ B?(Round to two
decimal​places.)
Based on the IRR criterion​,project A should be
(accepted/rejected)because its IRR is (more/less) than the expected
rate of return and project B should be (accepted/rejected)because
its IRR is (more/less) than the expected rate of
return.
(NPV, PI, and IRR calculations) You are considering two independent projects, project A and project B. The initial cash outlay associated with project A is $40,000, and the initial cash outlay associated with project B is $60,000. The required rate of return on both projects is 12 percent. The expected annual free cash inflows from each project are in the popup window. 6. Calculate the NPV, PI, and IRR for each project and indicate if the project should be accepted. a. What is the NPV of project A? (Round to the nearest cent.)
Data table (Click on the following icon 0 in order to copy its contents into a spreadsheet.) PROJECT A PROJECT B Initial Outlay - $40,000 - $60,000 Inflow year 1 12,000 13,000 Inflow year 2 12,000 13,000 Inflow year 3 12,000 13,000 Inflow year 4 12,000 13,000 Inflow year 5 12,000 13,000 Inflow year 6 12,000 13,000