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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 -$12,000 $4,000 $4,000 $4,000 $4,000 $4,000
Project B -$36,000 $11,200 $11,200 $11,200 $11,200 $11,200

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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