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Consider the following two mutually exclusive projects: Whichever project you choose, if any,
you require a 15% return on your investment. a-1. What is the payback period for each project?
(Round the final answers to 2 decimal places.) a-2. If you apply the payback criterion, which
investment will you choose? Project A Project B b-1. What is the discounted paybeck period for
each project? (Do not round intermediate calculations. Aound the finat answers to 2 decimal
places.)
b-2. If you apply the discounted payback criterion, which investment will you choose? Project A
Project B c-1. What is the NPV for each project? (Do not round intermediate calculations. Round
the final answers to 2 decimal places. Omit $ sign in your response.) c-2. If you apply the NPV
criterion, which investment will you choose? Project A Project B d-1. What is the IRR for each
project? (Round the final answers to 2 decimal places.) d.2. If you epply the IAR criterion, which
investment wil you choose? Projecta
d-2. If you apply the IRR criterion, which investment will you choose? Project A Project B e-1.
What is the profitability index for each project? (Do not round intermediate calculation. Round
the final answers to 3 decimal places.) e-2. If you apply the profitability index criterion, which
investment will you choose? Project A Project B 4. Based on your Bnswers in (a) thiought (o),
which project will you finally chioose?

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Consider the following two mutually exclusive projects Whichever.pdf

  • 1. Consider the following two mutually exclusive projects: Whichever project you choose, if any, you require a 15% return on your investment. a-1. What is the payback period for each project? (Round the final answers to 2 decimal places.) a-2. If you apply the payback criterion, which investment will you choose? Project A Project B b-1. What is the discounted paybeck period for each project? (Do not round intermediate calculations. Aound the finat answers to 2 decimal places.) b-2. If you apply the discounted payback criterion, which investment will you choose? Project A Project B c-1. What is the NPV for each project? (Do not round intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.) c-2. If you apply the NPV criterion, which investment will you choose? Project A Project B d-1. What is the IRR for each project? (Round the final answers to 2 decimal places.) d.2. If you epply the IAR criterion, which investment wil you choose? Projecta d-2. If you apply the IRR criterion, which investment will you choose? Project A Project B e-1. What is the profitability index for each project? (Do not round intermediate calculation. Round the final answers to 3 decimal places.) e-2. If you apply the profitability index criterion, which investment will you choose? Project A Project B 4. Based on your Bnswers in (a) thiought (o), which project will you finally chioose?