Year Cash Flow (A) Cash Flow (B)
0 -300,000 -300,000
1 40,000 25,000
2 140,000 60,000
3 260,000 80,000
4 300,000 700,000
You require a 14 percent return on your investment.
1.The payback period for Projects A and B is________ and _______years, respectively. (Round your answers to 2 decimal places. (e.g., 32.16))
2.The NPV for Projects A and B is_________ and_________ , respectively. (Round your answers to 2 decimal places and include the separator (comma) in your answers. (e.g., 123,456,789.16))
3.The IRR for Projects A and B is________ % and_______ % , respectively. (Do not include the percentage sign (%). Round your answers to 2 decimal places. (e.g., 32.16))
4.You will choose project_________ . (Answer in capital letter (e.g., A))
