You are analyzing two proposed capital investments with the following cash flows: Year Project X Project Y - $20,000 - $20,000 12,630 7,470 5,660 7,470 3 6,360 7,470 4 1,920 7,470 1, 2.

Compute the NPV statistic for Project U given the following cash flows if the appropriate cost of capital is 9 percent. Project U   Time 0   1   2   3   4   5 Cash Flow –$ 1,000     $ 350     $ 1,480     –$ 520     $ 400     –$ 100

Consider the following two mutually exclusive projects: Cash Flow (A) Cash Flow (B) -$ 215,000 34,000 -$ 57,000 32,900 45,000 24,300 18,300 51,000 270,000 17,800 The required return on these investments is 13 percent. a. What is the payback period for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. What is the NPV for each project? Year 0 WNIO 1 2 3 4 Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. c. What is the IRR for each project? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. d. What is the profitability index for each project? Note: Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161. e. Based on your answers in (a) through (d), which project will you finally choose? a. Project A Project B b. Project A Project B c. Project A Project B d.…

You are evaluating two projects with the following cash flows: Project Y -$ 511,000 209,400 Year 01234 Project X -$ 540,600 219,700 229,600 236,800 196,500 219, 200 227,100 187,900 What is the crossover rate for these two projects?