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Consider two investment opportunities: Year Project M Project N 0 -$60,000 -$60,000 1 $15,000 $0 2 $15,000 $0 3 $15,000 $0 4 $15,000 $0 5
Consider two investment opportunities:
Year | Project M | Project N |
0 | -$60,000 | -$60,000 |
1 | $15,000 | $0 |
2 | $15,000 | $0 |
3 | $15,000 | $0 |
4 | $15,000 | $0 |
5 | $15,000 | $80,000 |
Requirements:
- Calculate the NPV for both projects at a discount rate of 12%.
- Calculate the IRR for both projects.
- Find the Modified Internal Rate of Return (MIRR) for both projects.
- At what discount rate would you be indifferent between the two projects?
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Managerial Accounting The Cornerstone Of Business Decision Making
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
8th Edition
0357715349, 978-0357715345
