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can you please explain how you got the answers thank you! Click here to read the eBook: Payback Period CAPITAL BUDGETING CRITERIA A firm with
can you please explain how you got the answers thank you!
Click here to read the eBook: Payback Period CAPITAL BUDGETING CRITERIA A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, induding depreciation, are as follows: 0 1 2 3 4 5 Project M Project N -$30,000 $10,000 $10,000 $10,000 $10,000 $10,000 $90,000 $28,000 $28,000 $28,000 $28,000 $28,000 a. Calculate NPV for each project. Round your answers to the nearest cent. Do not round your intermediate calculations, Project M S Project NS Calculate IRR for each project. Round your answers to two decimal places. Do not round your intermediate calculations. Project M % Project N 6 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 b. Assuming the projects are independent, which one(s) would you recommend? -Select- C. If the projects are mutually exclusive, which would you recommend? -Select d. Notice that the projects have the same cash flow timing pattern. Why is there a conflict between NPV and IRR? -SelectStep by Step Solution
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