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(10-10a-b) Project S has a cost of $9,000 and is expected to produce benefits (cash flows) of $2,700 per year for 5 years. Project L
(10-10a-b) Project S has a cost of $9,000 and is expected to produce benefits (cash flows) of $2,700 per year for 5 years. Project L costs $26,000 and is expected to produce cash flows of $7,100 per year for 5 years.
A.Calculate the two projects' NPVs, assuming a cost of capital of 10%.Round your answers to the nearest cent.
| Project S | |||
| Project L Which project would be selected, both are mutally exclusive B.Calculate the two projects' IRRs.
|
Please round two decimal places
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