Janina, Incorporated, has the following mutually exclusive projects. Year Project A 0 -$ 22,000-$25,000 1 13,000 2 3 9,500 3,100 Project B 14,000 10,500 9,500 a-1. Calculate the payback period for each project. (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) Project A Project B years years a-2. If the company's payback period is two years, which, if either, of these projects should be chosen? ○ Project A O Project B ○ Both projects ○ Neither project b-1. What is the NPV for each project if the appropriate discount rate is 16 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Project A Project B
Janina, Incorporated, has the following mutually exclusive projects. Year Project A 0 -$ 22,000-$25,000 1 13,000 2 3 9,500 3,100 Project B 14,000 10,500 9,500 a-1. Calculate the payback period for each project. (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) Project A Project B years years a-2. If the company's payback period is two years, which, if either, of these projects should be chosen? ○ Project A O Project B ○ Both projects ○ Neither project b-1. What is the NPV for each project if the appropriate discount rate is 16 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Project A Project B
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Janina, Incorporated, has the following mutually exclusive projects.
Year
Project A
0
-$ 22,000-$25,000
1
13,000
2
3
9,500
3,100
Project B
14,000
10,500
9,500
a-1. Calculate the payback period for each project. (Do not round intermediate
calculations and round your answers to 3 decimal places, e.g., 32.161.)
Project A
Project B
years
years
a-2. If the company's payback period is two years, which, if either, of these projects
should be chosen?
○ Project A
O Project B
○ Both projects
○ Neither project
b-1. What is the NPV for each project if the appropriate discount rate is 16 percent? (A
negative answer should be indicated by a minus sign. Do not round intermediate
calculations and round your answers to 2 decimal places, e.g., 32.16.)
Project A
Project B
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