Question
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
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 | $22,400 |
Calculate NPV for each project. Do not round intermediate calculations. Round your answers to the nearest cent.
Project M:$
Project N:$
Calculate IRR for each project. Do not round intermediate calculations. Round your answers to two decimal places.
Project M: %
Project N: %
Calculate MIRR for each project. Do not round intermediate calculations. Round your answers to two decimal places.
Project M: %
Project N: %
Calculate payback for each project. Do not round intermediate calculations. Round your answers to two decimal places.
Project M: years
Project N: years
Calculate discounted payback for each project. Do not round intermediate calculations. Round your answers to two decimal places.
Project M: years
Project N: years
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
