Question
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.
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: _______?
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Accounting What the Numbers Mean
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
9th Edition
978-0-07-76261, 0-07-762611-7, 9780078025297, 978-0073527062
