CAPITAL BUDGETING CRITERIA

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:

a$.$ Calculate NPV for each project. Round your answers to the nearest cent. Do not round your intermediate calculations.

Project M $

Project N $

Calculate IRR for each project. Round your answers to two decimal places. Do not round your intermediate calculations.

Project M

$\%$

Project N $\%$

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?

$-$Select$-$