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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 years.
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: \$ Which project would be selected, assuming they are mutually exclusive? Based on the NPV values, 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, would 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. ProjectS:ProjectL:Whichprojectwouldbeselected,assumingtheyaremutuallyexclusive?%% Based on the MIRR values, 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, would be selected. Which project should actually be selected? should actually be selected
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