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Lobers, Inc., has two investment proposals, which have the following characteristics: Period Project A Project B 0 -9000 -12000 1 5000 5000 2 4000 5000

Lobers, Inc., has two investment proposals, which have the following characteristics: Period Project A Project B 0 -9000 -12000 1 5000 5000 2 4000 5000 3 3000 8000 For each project, compute its payback period, its net present value, and its profitability index using a discount rate of 15 percent. (9 marks) d. Assume that the cash flows of a project are given as follows: Year Cash Flow 0 -800 1 500 2 700 3 -650 4 800 5 900 The reinvestment rate is given as 20%, whilst the financing rate has been specified as 15%. Find the MIRR of the project.

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