Question
Compute the (a) NPV, (b) IRR, (c) MIRR, and (d) discounted payback for the following independent capital budgeting projects. (r=9%) Year Project T Project U
Compute the (a) NPV, (b) IRR, (c) MIRR, and (d) discounted payback for the following independent capital budgeting projects. (r=9%)
| Year | Project T | Project U |
| 0 | ($8,000) | ($10,000) |
| 1 | 2,000 | 9,000 |
| 2 | 1,000 | 5,000 |
| 3 | 7,000 | (3,100) |
Which project(s), should the company purchase? Why?
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Personal Finance QuickStart Guide
Authors: Morgen Rochard
1st Edition
1945051019, 978-1945051012
