Question
5. Find the NPV, IRR, MIRR and Payback for the following projects; use a WACC of 10%. Year Project A Project B 0 -$130,000 -$130,000
5. Find the NPV, IRR, MIRR and Payback for the following projects; use a WACC of 10%.
| Year | Project A | Project B |
| 0 | -$130,000 | -$130,000 |
| 1 | $60,000 | $35,000 |
| 2 | $40,000 | $40,000 |
| 3 | $40,000 | $45,000 |
| 4 | $25,000 | $70,000 |
| Project A | Project B | |
| NPV | ||
| IRR | ||
| MIRR | ||
| Payback Period |
If projects A & B are mutually exclusive, which would you recommend be accepted?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To find the NPV IRR MIRR and Payback for the given projects well use a WACC Weighted Average Cost of Capital of 10 Well start by calculating the NPV t...
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Step: 2
Step: 3
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
12th edition
978-0324597714, 324597711, 324597703, 978-8131518571, 8131518574, 978-0324597707
