Question
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
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:
0 | 1 | 2 | 3 | 4 | 5 |
Project M | -$3,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 |
Project N | -$9,000 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 |
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
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started