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HOW DO YOU ANSWER: 11-1, 11-4 AND 11-6 IN EXCEL ? 11-6 calculate the payback period for each project. liku a firm's decision to use
HOW DO YOU ANSWER: 11-1, 11-4 AND 11-6 IN EXCEL ?
11-6 calculate the payback period for each project.
liku a firm's decision to use payback? this influence PROBLEMS NPV its WACC is 12%. What is the project's NPV? 11 1 Project K costs $52,125, its expected cash inflows are $12,000 per year for 8 years, and Problems .6 11-2 IRR Refer to Problem 11-1. What is the project's IRR? 11-3 MIRR Refer to Problem 11-1. What is the project's MIRR? 11-4 11-5 PAYBACK PERIOD Refer to Problem 11-1. What is the project's payback? DISCOUNTED PAYBACK Refer to Problem 11-1. What is th e project's discounted payback? with the following cash flows (in millions): 0 2 3 $10 $17 Project A Project B -$25 -$20 $5 $10 $9 $6 a. b. C. What are the projects' NPVs assuming the WACC is 500710%715%? What are the projects' IRRs at each of these WACCs? If the WACC was 5% and A and B were mutually exclusive, which project would you choose? What if the WACC was 10%215%? (Hint: The crossover rate is 7.8190.)
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