Question
Capital Budgeting Methods Project S has a cost of $11,000 and is expected to produce benefits (cash flows) of $3,400 per year for 5 years.
Capital Budgeting Methods Project S has a cost of $11,000 and is expected to produce benefits (cash flows) of $3,400 per year for 5 years. Project L costs $23,000 and is expected to produce cash flows of $6,900 per year for 5 years.
A. Calculate the two projects' NPVs, assuming a cost of capital of 14%. Round your answers to the nearest cent.
Project S $ ?
Project L $ ?
B. Calculate the two projects' IRRs. Round your answers to two decimal places.
Project S % ?
Project L % ?
C. Calculate the two projects' MIRRs, assuming a cost of capital of 14%. Round your answers to two decimal places.
Project S % ?
Project L % ?
D. Calculate the two projects' PIs, assuming a cost of capital of 14%. Round your answers to two decimal places.
Project S ?
Project L ?
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Wealth Habits Six Ordinary Steps To Achieve Extraordinary Financial Freedom
Authors: Candy Valentino
1st Edition
1394152299, 978-1394152292
