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 | -$21,000 | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| Project N | -$63,000 | $19,600 | $19,600 | $19,600 | $19,600 | $19,600 |
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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:
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
5th Edition
0072339160, 978-0072339161
