Question
A company is considering two projects and can only accept one of them.The projected cash flows of both the projects are as follows: Year Project
A company is considering two projects and can only accept one of them.The projected
cash flows of both the projects are as follows:
Year Project A Cash Flow Project B Cash Flow
0 -$10,000,000 -$15,000,000
3 $15,000,000 $21,700,000
The company's WACC is 10%.Compute the payback, NPV, IRR and MIRR for each
project. Which project should be chosen?Explain the logic behind your choice.
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Entrepreneurial Finance
Authors: Philip J. Adelman; Alan M. Marks
6th edition
9780133099096, 133140512, 133099091, 978-0133140514
