Question
A firm with a 14% 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 14% 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 |
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 Project N
E) Calculate discounted payback for each project. Round your answers to two decimal places. Do not round your intermediate calculations. Project M Project N
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Personal Financial Planning For Executives And Entrepreneurs
Authors: Michael J. Nathanson, Jeffrey T. Craig, Jennifer A. Geoghegan, Nadine Gordon Lee, Michael A. Haber, Seth P. Hieken, Matthew C. Ilteris, D. Scott McDonald, Joseph A. Salvati, Stephen R. Stelljes
1st Edition
3030405273, 978-3030405274
