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A company is considering two projects that have the following cash flow streams: Project A Project B Year 0 -15,000,000 -15,000,000 Year 1 5,500,000 2,500,000
A company is considering two projects that have the following cash flow streams:
Project A | Project B | |
Year 0 | -15,000,000 | -15,000,000 |
Year 1 | 5,500,000 | 2,500,000 |
Year 2 | 5,500,000 | 4,500,000 |
Year 3 | 5,500,000 | 6,500,000 |
Year 4 | 5,500,000 | 8,500,000 |
The cost of capital/discount rate is 7.50% |
What are the NPV, IRR and MIRR for each of the projects? |
What are the payback periods and discounted payback periods for each project?
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