1 2 3 4 CAPITAL BUDGETING CRITERIA A firm with a 13 WACC is evaluating two projects for this year's capital budget After tax cash flows, including depreciation, are as follows 0 5 Project M $12,000 $4,000 $4,000 $4,000 $4,000 $4,000 Project N $36,000 $11,200 $11,200 $11,200 $11,200 $11,200 a Calculate NPV for each project Round your answers to the nearest cent Do not round your intermediate calculations Project M $ Project N $ Calculate IRR for each project Round your answers to two decimal places Do not round your intermediate calculations Project M Project N Calculate MIRR for each project Round your answers to two decimal places Do not round your intermediate calculations Project M Project N Calculate payback for each project Round your answers to two decimal places Do not round your intermediate calculations Project M years Project N years Calculate discounted payback for each project Round your answers to two decimal places Do not round your intermediate calculations Project M years Project N years

Question

1 2 3 4 CAPITAL BUDGETING CRITERIA A firm with a 13  WACC is evaluating two projects for this year's capital budget  After tax cash flows, including depreciation, are as follows  0 5         Project M  $12,000 $4,000 $4,000 $4,000 $4,000 $4,000 Project N  $36,000 $11,200 $11,200 $11,200 $11,200 $11,200 a  Calculate NPV for each project  Round your answers to the nearest cent  Do not round your intermediate calculations  Project M $ Project N $ Calculate IRR for each project  Round your answers to two decimal places  Do not round your intermediate calculations  Project M   Project N   Calculate MIRR for each project  Round your answers to two decimal places  Do not round your intermediate calculations  Project M   Project N   Calculate payback for each project  Round your answers to two decimal places  Do not round your intermediate calculations  Project M years Project N years Calculate discounted payback for each project  Round your answers to two decimal places  Do not round your intermediate calculations  Project M years Project N years

Accepted Answer

The Answer is in the image, click to view ...

Question

1 2 3 4 CAPITAL BUDGETING CRITERIA A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax cash flows,

Step by Step Solution

Step: 1

Get Instant Access to Expert-Tailored Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Recommended Textbook for

Financial management theory and practice