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Information follows: Two Independent projects. Do we invest in none, one, or both? Fill in Matrix below. WACC / RROR (company required rate of return)
Information follows: Two Independent projects. Do we invest in none, one, or both? Fill in Matrix below.
WACC / RROR (company required rate of return) = 16% and for project J
And RROR for riskier project V is 19%
|
| "J" | "V" |
payback | PB |
|
|
discounted PB | dPB |
|
|
net present value | NPV |
|
|
profitability index | PI |
|
|
internal RoR | IRR |
|
|
modified IRR | MIRR |
|
|
project >> | "J" | "V" |
Time | Cash Flows | Cash Flows |
0 | -267 | -100 |
1 | 95 | 50 |
2 | 95 | 50 |
3 | 95 | 50 |
4 | 95 | -10 |
5 |
| 30 |
Invest? Y or N __________ __________
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