Use the following cash flows for project A and B: A:(-2000,500,600,700,800) B:(-2000,950,850,400,300)
a. calculated the payback period for project A and B.
b. IF the discount rate is 12%, what is the discounted payback period for project A for project B?
c. calculate the internal rate of return for project Aand B?
d. if A and B are mutually exclusive projects and the required rate of return is 5%, which should be accepted?
f. IF the discount rate is 12%, and A and B are mutually exclusive, which project should be accepted?
j. At what discount rate will we be indifferent between A and B?