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Cost of capital=10% Suppose a company is considering following two mutually exclusive project: Project A Initial Investment ........ Cash flow for Year 1 and 2...

Cost of capital=10%
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Suppose a company is considering following two mutually exclusive project: Project A Initial Investment ........ Cash flow for Year 1 and 2... Project life....... $40,000 $15,000 ..2 Years Project B Initial Investment ... Cash flow for Year 1, 2 and 3 Project life..... $80,000 .$20,000 ..3 Years Required: Calculate NPV, IRR, MIRR, PI, Discounted payback period and suggest whether a company should choose Project A or B. Suppose a company is considering following two mutually exclusive project: Project A Initial Investment ........ Cash flow for Year 1 and 2... Project life....... $40,000 $15,000 ..2 Years Project B Initial Investment ... Cash flow for Year 1, 2 and 3 Project life..... $80,000 .$20,000 ..3 Years Required: Calculate NPV, IRR, MIRR, PI, Discounted payback period and suggest whether a company should choose Project A or B

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