Problem 51 Calculating Payback Period and NPV
Fuji Software, Inc., has the following mutually exclusive projects. 
Year  Project A  Project B  
0  –$  20,000  –$  23,000 
1  12,000  13,000  
2  8,500  9,500  
3  2,900  8,500 
a1.  Calculate the payback period for each project. (Round your answers to 3 decimal places. (e.g., 32.161)) 
Payback period  
Project A  years 
Project B  years 
a2.  Which, if either, of these projects should be chosen?  

b1.  What is the NPV for each project if the appropriate discount rate is 16 percent? (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places. (e.g., 32.16)) 
NPV  
Project A  $ 
Project B  $ 
b2.  Which, if either, of these projects should be chosen if the appropriate discount rate is 16 percent?  

I would like you to walk me through the steps if possible.