The Bolster Company is considering two mutually exclusive projects:
The required rate of return on these projects is 12 percent.
a.What is each project's payback period?
b.What is each project's discounted payback period?
c.What is each project's net present value?
d.What is each project's internal rate of return?
e.Fully explain the results of your analysis.Which project do you prefer,and why?
Definitions:
Mann-Whitney Test
A nonparametric test used to assess whether there is a significant difference between two independent samples, an alternative to the t-test when certain assumptions are not met.
Sign Test
A non-parametric test used to determine if there is a significant difference between the median of two dependent samples.
Two-sample T-test
A statistical method to determine if there is a significant difference between the means of two groups, which may have different variances.
Wilcoxon Signed Rank
The Wilcoxon Signed Rank test is a nonparametric statistical test used to compare two related samples to assess whether their population mean ranks differ.
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