please type the answers and label the answers)(mba 5400 Capital Budgeting Techniques) Homework 1: Capital Budgeting Techniques

1. Consider these three independent projects:

Year	FF	GG	HH
0	-$100,000	-$200,000	-$300,000
1	$30,000	$40,000	$40,000
2	$30,000	$40,000	$40,000
3	$30,000	$40,000	$40,000
4	$40,000	$120,000	$240,000
Cost of capital	5%	6%	7%

(a) Calculate the evaluation results based on all capital budgeting techniques we learned for all these three projects, including payback, discounted payback, NPV, PI, IRR, and MIRR. Assume 15% reinvestment rate.

(b) If there is no limit on the capital budget, which project(s) would you choose? Why?

(c) If there is a limit on the capital budget of $300,000, which project(s) would you choose? Why?