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Please answer with calculation steps and clearly 1). From the information below, calculate the NPV (Net Present Value), IRR (Internal Rate of Return), MIRR (Modified
Please answer with calculation steps and clearly
1). From the information below, calculate the NPV (Net Present Value), IRR (Internal Rate of Return), MIRR (Modified Internal Rate of Return), future value cash flow from each project!
2). Which project do you think is profitable for the company?
Project S dan L Period 2 3 N Project S 1 2 3 4 -1500 600 500 400 0 -1500 -1500 600 400 ? 500 400 400 300 Total 1900 1775 400 675 400 FVCF3 FVCF2 FVCF1 Terminal value Projects Project L WACC NPV S ? 10% ? ? ? ? NPVL IRRS IRRL Bonus or the difference between the Internal Rate of Return (IRR) and the Weighted Average Cost of Capital (WACC) ? ? ? 0 3 Project L 400 400 ? -1500 MIRR S MIRRL 675 ? ? 300 FVCF3 FVCF2 FVCF1 Terminal value
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