Question
1. 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
1. 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 | 1 | 2 | 3 | 4 | 5 |
Project A | -$6,000 | $2,000 | $2,000 | $2,000 | $2,000 | $2,000 |
Project B | -$18,000 | $5,600 | $5,600 | $5,600 | $5,600 | $5,600 |
Calculate NPV for each project. Round your answers to the nearest cent. Project A $____ Project B $____
Calculate IRR for each project. Round your answers to two decimal places. Project A ____ % Project B ____ %
Calculate MIRR for each project. Round your answers to two decimal places. Project A ____% Project B ____%
Calculate payback for each project. Round your answers to two decimal places. Project A ____years Project B ____years
Calculate discounted payback for each project. Round your answers to two decimal places. Project A ____years Project B ____years
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