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a. 1. Please use class notes and these Helpful Videos to answer the following questions: Time 0 1 2 3 4 Cash Flow -5,000 3,000
a. 1. Please use class notes and these Helpful Videos to answer the following questions: Time 0 1 2 3 4 Cash Flow -5,000 3,000 2,000 1,000 3,000 Compute the discounted payback using a 10 percent discount rate, and then tell me what the decision rule is. b. Compute the NPV using a 20 discount rate, and then tell me what the decision rule is. Compute the IRR, and then tell me what the decision rule is. d. Compute the Modified IRR, with a 10 percent reinvestment rate, and then tell me what the decision rule is. Compute the equivalent annual annuity with a 10 percent discount rate, and then tell me what the decision rule is if you comparing these cash flows to another project. Label the axis with numbers for the 2 mutually exclusive projects (below), and then write a brief explanation of which project you would choose based on IRR and which you would choose based on NPV. C. e. f. NPV Project B A -10,000 10,000 1,000 1,000 Cash Flows B -10,000 1,000 1,000 12,000 Project A Crossover rate Discount rate
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