What is the payback period for each project? (Round your answers to 2 decimal pl

Question

What is the payback period for each project? (Round your answers to 2 decimal places. (e.g., 32.16))

What is the discounted payback period for each project? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))

What is the NPV for each project? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)

What is the IRR for each project? (Round your answers to 2 decimal places. (e.g., 32.16))

What is the profitability index for each project? (Do not round intermediate calculations and round your final answers to 3 decimal places. (e.g., 32.161))

Please explain how you calculated each step.

Explanation / Answer

Year A Cumulative PV@14% Cumulative B Cumulative PV@14% Cumulative 0 -345,000 -345,000 -345000 -345000 -48,500 -48,500 -48500 -48500 1 50,000 -295,000 43859.6491 -301140.4 24,500 -24,000 21491.2281 -27008.772 2 70,000 -225,000 53862.727 -247277.6 22,500 -1,500 17313.0194 -9695.753 3 70,000 -155,000 47248.0061 -200029.6 20,000 18,500 13499.4303 3803.678 4 445,000 290,000 263475.723 63446.1 15,100 33,600 8940.41219 12744.090 NPV 63446.1057 12744.09 Payback Period 4 4 2.08 2.718 Formulae =2+(1500/20000) =2+(9695/13499)

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