Capital Budgeting Methods

Project S has a cost of $9,000 and is expected to produce benefits (cash flows) of $2,700 per year for 5 years. Project L costs $26,000 and is expected to produce cash flows of $7,100 per year for 5 years.

Calculate the two projects' NPVs, assuming a cost of capital of 10%. Round your answers to the nearest cent.

Project S: _______$

Project L: _______$

Calculate the two projects' IRRs. Round your answers to two decimal places.

Project S: _______%

Project L: _______%

Calculate the two projects' MIRRs, assuming a cost of capital of 10%. Round your answers to two decimal places.

Project S: _______%

Project L: _______%

Calculate the two projects' PIs, assuming a cost of capital of 10%. Round your answers to two decimal places.

Project S: _______?

Project L: _______?