Question
Problem 11-7 Capital budgeting criteria A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation,
Problem 11-7 Capital budgeting criteria
A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation, are as follows:
0 | 1 | 2 | 3 | 4 | 5 |
Project A | -$30,000 | $10,000 | $10,000 | $10,000 | $10,000 | $10,000 |
Project B | -$90,000 | $28,000 | $28,000 | $28,000 | $28,000 | $28,000 |
Calculate NPV for each project. Round your answers to the nearest cent. Project A $ Project B $
Calculate IRR for each project. Round your answers to two decimal places. Project A % Project B %
Calculate MIRR for each project. Round your answers to two decimal places. Project A % Project B %
Calculate payback for each project. Round your answers to two decimal places. Project A years Project B years
Calculate discounted payback for each project. Round your answers to two decimal places. Project A years Project B years
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