Problem 10 10 Capital Budgeting Methods Project S has a cost of $11,000 and is expected to produce benefits (cash flows) of $3,400 per year for 5 years Project L costs $23,000 and is expected to produce cash flows of $6,900 per year for 5 years Calculate the two projects' NPVs, assuming a cost of capital of 14 Round your answers to the nearest cent Project S $ Project L $ Which project would be selected, assuming they are mutually exclusive Select Project SProject LItem 3 Calculate the two projects' IRRs Round your answers to two decimal places Project S Project L Which project would be selected, assuming they are mutually exclusive Select Project SProject LItem 6 Calculate the two projects' MIRRs, assuming a cost of capital of 14 Round your answers to two decimal places Project S Project L Which project would be selected, assuming they are mutually exclusive Select Project SProject LItem 9 Calculate the two projects' PIs, assuming a cost of capital of 14 Round your answers to two decimal places Project S Project L Which project would be selected, assuming they are mutually exclusive Select Project SProject LItem 12 Which project should actually be selected Select Project SProject LItem 13

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Problem 10-10 Capital Budgeting Methods Project S has a cost of $11,000 and is expected to produce benefits (cash flows) of $3,400 per year for

Problem 10-10 Capital Budgeting Methods

Project S has a cost of $11,000 and is expected to produce benefits (cash flows) of $3,400 per year for 5 years. Project L costs $23,000 and is expected to produce cash flows of $6,900 per year for 5 years.

Calculate the two projects' NPVs, assuming a cost of capital of 14%. Round your answers to the nearest cent.

Project S $

Project L $

Which project would be selected, assuming they are mutually exclusive? -Select-Project SProject LItem 3
Calculate the two projects' IRRs. Round your answers to two decimal places.

Project S %

Project L %

Which project would be selected, assuming they are mutually exclusive? -Select-Project SProject LItem 6
Calculate the two projects' MIRRs, assuming a cost of capital of 14%. Round your answers to two decimal places.

Project S %

Project L %

Which project would be selected, assuming they are mutually exclusive? -Select-Project SProject LItem 9
Calculate the two projects' PIs, assuming a cost of capital of 14%. Round your answers to two decimal places.

Project S

Project L

Which project would be selected, assuming they are mutually exclusive? -Select-Project SProject LItem 12

Which project should actually be selected? -Select-Project SProject LItem 13