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As the CFO Raytheon Technology you are reviewing two projects, #1 and #2. Each have three year lives. The firms required rate of return is
As the CFO Raytheon Technology you are reviewing two projects, \#1 and \#2. Each have three year lives. The firms required rate of return is 10% and the maximum expected payback period is 2 years. The net cash flow estimates are as follows: 1. What is the payback period under the traditional vs the discounted methods for each project? 2. What is each projects NPV? 3. What is each projects IRR? 4. What is each projects MIRR? 5. Which project (if any) should the company undertake if the projects are independent? Why? 6. Which project (if any) should the company undertake if the projects are mutually exclusive? Why? Be sure to describe at least two measures in reference to your response to 5 and 6 . As the CFO Raytheon Technology you are reviewing two projects, \#1 and \#2. Each have three year lives. The firms required rate of return is 10% and the maximum expected payback period is 2 years. The net cash flow estimates are as follows: 1. What is the payback period under the traditional vs the discounted methods for each project? 2. What is each projects NPV? 3. What is each projects IRR? 4. What is each projects MIRR? 5. Which project (if any) should the company undertake if the projects are independent? Why? 6. Which project (if any) should the company undertake if the projects are mutually exclusive? Why? Be sure to describe at least two measures in reference to your response to 5 and 6
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