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Using image: a-1. What is the payback period for each project a-2. If you apply the payback criterion, which investment will you choose? b-1. What is the discounted payback period for each project? b-2. If you apply the discounted payback criterion, which investment will you choose? c-1. What is the NPV for each project? c-2. If you apply the NPV criterion, which investment will you choose? d-1. What is the IRR for each project? d-2. If you apply the IRR criterion, which investment will you choose? e-1. What is the profitability index for each project? e-2. If you apply the profitability index criterion, which investment will you choose? f. Based on your answers in (a) through (e), which project will you finally choose?

Using image: a-1. What is the payback period for each project a-2. If you apply the payback criterion, which investment will you choose? b-1. What is the discounted payback period for each project? b-2. If you apply the discounted payback criterion, which investment will you choose? c-1. What is the NPV for each project? c-2. If you apply the NPV criterion, which investment will you choose? d-1. What is the IRR for each project? d-2. If you apply the IRR criterion, which investment will you choose? e-1. What is the profitability index for each project? e-2. If you apply the profitability index criterion, which investment will you choose? f. Based on your answers in (a) through (e), which project will you finally choose?

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Using image: a-1. What is the payback period for each project a-2. If you apply the payback criterion, which investment will you choose? b-1. What is the discounted payback period for each project? b-2. If you apply the discounted payback criterion, which investment will you choose? c-1. What is the NPV for each project? c-2. If you apply the NPV criterion, which investment will you choose? d-1. What is the IRR for each project? d-2. If you apply the IRR criterion, which investment will you choose? e-1. What is the profitability index for each project? e-2. If you apply the profitability index criterion, which investment will you choose? f. Based on your answers in (a) through (e), which project will you finally choose?
9 Prob X Question 12 - Chapter 09 Probler X heducation.com/ext/map/index.html?_con=con&external_browser=0&launch Url=https%253A%2 Problem Seti Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$ -$ 0 1 2 3 4 349,000 46,000 66,000 66,000 441,000 Project A Project B 49,000 24,100 22,100 19,600 14,700 + Whichever project you choose, if any, you require a return of 16 percent on your investment. a-1. What is the payback period for each project? (Do not round interm calculations and round your answers to 2 decimal places, e.g., 32.16.) Payback period years years Saved < Prev. 12 of 15 TUWE BEAVE
Transcribed Image Text:9 Prob X Question 12 - Chapter 09 Probler X heducation.com/ext/map/index.html?_con=con&external_browser=0&launch Url=https%253A%2 Problem Seti Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$ -$ 0 1 2 3 4 349,000 46,000 66,000 66,000 441,000 Project A Project B 49,000 24,100 22,100 19,600 14,700 + Whichever project you choose, if any, you require a return of 16 percent on your investment. a-1. What is the payback period for each project? (Do not round interm calculations and round your answers to 2 decimal places, e.g., 32.16.) Payback period years years Saved < Prev. 12 of 15 TUWE BEAVE
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