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Problem 12-10 Capital Budgeting Methods Project S has a cost of $9,000 and is expected to produce benefits (cash flows) of $2,700 per year for
Problem 12-10 Capital Budgeting Methods Project S has a cost of $9,000 and is expected to produce benefits (cash flows) of $2,700 per year for 5 years. Project L costs $26,000 and is expected to produce cash flows of $7,100 per year for 5 years. a. Calculate the two projects' NPVs, assuming a cost of capital of 10%. Round your answers to the nearest cent. Project S Project L Which project would be selected, assuming they are mutually exclusive? b. 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? c. Calculate the two projects. MIRRs, assuming a cost of capital of 10%. Round your answers to two decimal places. Project s Project L Which project would be selected, assuming they are mutually exclusive? d. Calculate the two projects. Pls, assuming a cost of capital of 10%. Round your answers to two decimal places. Project S Project L Which project would be selected, assuming they are mutually exclusive? Which project should actually be selected? -Select
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