Net present value and profitability index

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Two investment projects which are mutually exclusive both require a $10,000,0000 investment. Projected cash flows are:
Year Project A Project B
1 $3,500,000 $6,500,000
2 $3,500,000 3,000,000
3 $3,500,000 3,000,000
4 $3,500,000 1,000,000

If your discount rate is 12 percent, calculate payback, net present value and profitability index for each project.

Reference no: EM13523917

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