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 | -$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 |
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
13th edition
ISBN: 1439078106, 111197375X, 9781439078105, 9781111973759, 978-1439078099
