Projects Payback Period, Discounted Payback and Profitability Index Assignment | Homework For You
Please base your answers to questions 2-6 on the information, below, for Projects A and B A B 0 90000 -2500 1 25000 1500 50000 2 1500 1500 50000 4 50000 1500 NPV PROFILE NPV’s for k A NPV’s for B 0.05 $63,488.00 $2,818.93 $2,523.99 $2,468.19 $2,254.80 $2,008.46 $1,782.47 $54,210.50 0.08 $52,458.19 $45,766.00 0.125 $38,059.75 0.15 $31,009.79 0.075 0.1 IRRS 29% 47%
Question 2 If the required return for both projects A and B is 8% and the projects mutually are exclusive, which project(s) should be selected?
Questions 3-6 Continuing to assume that both project’s A and B have required returns of 8%, find the projects Payback period, discounted payback and profitability index .Get Finance homework help today