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 | -$18,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 |
| Project N | -$54,000 | $16,800 | $16,800 | $16,800 | $16,800 | $16,800 |
a) Calculate NPV for each project. Round your answers to the nearest cent. Do not round your intermediate calculations. Project M $_______ Project N $_______
b) Calculate IRR for each project. Round your answers to two decimal places. Do not round your intermediate calculations. Project M %_______ Project N %_______
c) Calculate MIRR for each project. Round your answers to two decimal places. Do not round your intermediate calculations. Project M %_______ Project N %_______
d) Calculate payback for each project. Round your answers to two decimal places. Do not round your intermediate calculations. Project M _______ years Project N _______ years
e) 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
PLEASE FORMAT THE ANSWERS THE WAY I LISTED THEM.
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