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 | -$15,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 |
| Project N | -$45,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 |
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
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Money Banking And Financial Markets
Authors: Stephen Cecchetti
2nd Edition
0073523097, 9780073523095
