A firm with a 13 WACC is evaluating two projects for this year's capital budget After tax cash flows, including depreciation, are as follows 0 1 2 3 4 5 Project M $24,000 $8,000 $8,000 $8,000 $8,000 $8,000 Project N $72,000 $22,400 $22,400 $22,400 $22,400 $22,400 Calculate NPV for each project Round your answers to the nearest cent Do not round your intermediate calculations Project M $ Project N $ Calculate IRR for each project Round your answers to two decimal places Do not round your intermediate calculations Project M Project N Calculate MIRR for each project Round your answers to two decimal places Do not round your intermediate calculations Project M Project N Calculate payback for each project Round your answers to two decimal places Do not round your intermediate calculations Project M years Project N years Calculate discounted payback for each project Round your answers to two decimal places Do not round your intermediate calculations Project M years Project N years Assuming the projects are independent, which one(s) would you recommen If the projects are mutually exclusive, which would you recommend Notice that the projects have the same cash flow timing pattern Why is there a conflict between NPV and IRR

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A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation, are as follows:

0 1 2 3 4 5

Project M -$24,000 $8,000 $8,000 $8,000 $8,000 $8,000

Project N -$72,000 $22,400 $22,400 $22,400 $22,400 $22,400

Calculate NPV for each project. Round your answers to the nearest cent. Do not round your intermediate calculations. Project M $ ______ Project N $______

Calculate IRR for each project. Round your answers to two decimal places. Do not round your intermediate calculations. Project M ______ % Project N ______ %

Calculate MIRR for each project. Round your answers to two decimal places. Do not round your intermediate calculations. Project M ______ % Project N ______ %

Calculate payback for each project. Round your answers to two decimal places. Do not round your intermediate calculations. Project M ______ years Project N ______ years

Calculate discounted payback for each project. Round your answers to two decimal places. Do not round your intermediate calculations. Project M ______ years Project N ______ years
Assuming the projects are independent, which one(s) would you recommen
If the projects are mutually exclusive, which would you recommend?
Notice that the projects have the same cash flow timing pattern. Why is there a conflict between NPV and IRR?