Cash flows of two mutually exclusive projects

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Consider the following cash flows of two mutually exclusive projects for Spartan Rubber Company. Assume the discount rate for Spartan Rubber Company is 9 percent. Year Dry Prepreg Solvent Prepreg

0 –$ 1,820,000 –$ 810,000

1 1,112,000 435,000

2 924,000 720,000

3 762,000 414,000

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

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

c. What is the IRR for each project? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places (e.g., 32.16).)

Reference no: EM132072799

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