11-1If Company XYZ plans to invest in a project with initial capital outlay $52,125, annual net cash inflow $12,000 for 8 years, and discount rate 12%, what is the Company XYZ's NPV?

11-2For the Company XYZ's same project as in 11-1, what is the IRR for the project?

11-3Calculate MIRR for the above project in 11-1.

11-4Calculate the payback period of the above project.

11-5Calculate the discounted payback period of the above project.

11-6There are two projects: Project A and Project B

a.Project A: CF₀ = -6000; CF_1-5 = 2000; I/YR = 14.

Calculate NPV, IRR, MIRR, Payback period, and discounted payback period for Project A.

Project B: CF₀ = -18000; CF_1-5 = 5600; I/YR = 14.

Calculate NPV, IRR, MIRR, Payback period, and discounted payback period for Project B.

b.If the two projects are independent, which project(s) would be accepted?

c.If the two projects are mutually exclusive, which project would be accepted?

d.Is there conflict using both NPV and IRR approaches? If yes, why?