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Capital Budgeting Methods Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year for 5
Capital Budgeting Methods Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year for 5 years. Project L costs $25,000 and is expected to produce cash flows of $7,400 per year for 5 years. Calculate the two projects' NPVs, assuming a cost of capital of 12%. Do not round intermediate calculations. Round your answers to the nearest cent. Project S: $ Project L: $ Which project would be selected, assuming they are mutually exclusive? Based on the NPV values, -Select- would be selected. Calculate the two projects' IRRS. 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 IRR values, -Select- would be selected. Calculate the two projects' MIRRS, assuming a cost of capital of 12%. Do not round intermediate calculations. Round your answers to two decimal places. Project 5: 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' Pls, assuming a cost of capital of 12%. Do not round intermediate calculations. Round your answers to three decimal places. Project 5: Project L
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