Question
2. Given the following cash flows for project X and project Y, Year Project X Project Y 0 -55000 -100000 1 20000 15000 2 13500
2. Given the following cash flows for project X and project Y,
| Year | Project X | Project Y |
| 0 | -55000 | -100000 |
| 1 | 20000 | 15000 |
| 2 | 13500 | 17000 |
| 3 | 11000 | 19000 |
| 4 | 10000 | 25000 |
| 5 | 9000 | 30000 |
| 6 | 7500 | 35000 |
a. Calculate the NPV, IRR, MIRR and traditional payback period for each project, assuming a required rate of return of 7 percent.
b. If the projects are independent, which project(s) should be selected? If they are mutually exclusive, which project should be selected?
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Victorian Literature And Finance
Authors: Francis O'Gorman
1st Edition
0199281920, 978-0199281923
