Question: Note the following information on the yearly cash flows of two mutually exclusive projects under consideration by Wang Food Markets, Inc.
|
Year
|
A
|
B
|
|
0
|
$ -30,000
|
$ -60,000
|
|
1
|
10,000
|
20,000
|
|
2
|
10,000
|
20,000
|
|
3
|
10,000
|
20,000
|
|
4
|
10,000
|
20,000
|
|
5
|
10,000
|
20,000
|
Wang requires a 14% rate of return on projects of this nature.
[A] Calculate the NTV of both projects.
[B] Calculate the internal rate of return on both projects.
[C] Calculate the profitability index of both projects.
[D] Calculate the payback period on both projects.