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A company is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below: 0 1 2 3 4 S -1,000 900
A company is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below:
0 | 1 | 2 | 3 | 4 | |
S | -1,000 | 900 | 250 | 10 | 10 |
L | -1,000 | 0 | 250 | 400 | 800 |
Compute: Discounted payback period; profitability index; internal rate of return; NPV if hurdle is 12%.
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