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Capital Budgeting Methods Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,500 per year for 5
Capital Budgeting Methods Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,500 per year for 5 years. Project L costs $25,000 and is expected to produce cash flows of $8,000 per year for 5 years. Calculate the two projects' NPVs, assuming a cost of capital of 14%. Do not round intermediate calculations. Round your answers to the nearest cent. Project S: $ Project L: $ 2015.78 2464.65 Which project would be selected, assuming they are mutually exclusive? Based on the NPV values, Project L would be selected. Calculate the two projects' IRRs. Do not round intermediate calculations. Round your answers to two decimal places. Project S: Project L: 22.11 % 18.03 % Which project would be selected, assuming they are mutually exclusive? Based on the IRR values, Project Swould be selected. Calculate the two projects' MIRRS, assuming a cost of capital of 14%. Do not round intermediate calculations. Round your answers to two decimal places. Project S: % Project L: % Which project would be selected, assuming they are mutually exclusive? Based on the MIRR values, -Select- would be selected. Calculate the two projects' PIs, assuming a cost of capital of 14%. Do not round intermediate calculations. Round your answers to three decimal places. Project S: Project L: Which project would be selected, assuming they are mutually exclusive? Based on the PI values, Project S would be selected. Which project should actually be selected? Project L should actually be selected.
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