Question
Cash flows for two mutually exclusive projects are shown below: Year CF M CF N 0 -200 -200 1 85 60 2 85 85 3
| Cash flows for two mutually exclusive projects are shown below: |
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| Year | CFM | CFN |
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| 0 | -200 | -200 |
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| 1 | 85 | 60 |
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| 2 | 85 | 85 |
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| 3 | 85 | 110 |
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| Both projects have a cost of capital of 10%. |
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| a. Calculate the payback for both projects and confirm which project will be accepted. |
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| b. Calculate the discounted payback for both projects and confirm which project will be accepted. | ||||||||
| c. Calculate the NPV for both projects and confirm which project will be accepted. |
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| d. Calculate the IRR for both projects and confirm which project will be accepted. |
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| e. Calculate the MIRR for both projects and confirm which project will be accepted. |
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The ABCs Of Personal Finance
Authors: Bukiie Smart
1st Edition
198092614X, 978-1980926146
