Question
Problem 11-7 Capital budgeting criteria A firm with a 14% 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 14% 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 M | -$12,000 | $4,000 | $4,000 | $4,000 | $4,000 | $4,000 |
Project N | -$36,000 | $11,200 | $11,200 | $11,200 | $11,200 | $11,200 |
Calculate NPV for each project. Round your answers to the nearest cent. Do not round your intermediate calculations. Project M __ $ Project N __ $
Calculate IRR for each project. Round your answers to two decimal places. Do not round your intermediate calculations. Project M __ % Project N __ %
Calculate MIRR for each project. Round your answers to two decimal places. Do not round your intermediate calculations. Project M __ % Project N __ %
Calculate payback for each project. Round your answers to two decimal places. Do not round your intermediate calculations. Project M __ years Project N __ years
Calculate discounted payback for each project. Round your answers to two decimal places. Do not round your intermediate calculations. Project M __ years Project N __ years
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