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Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,500 per year for 5 years. Project L costs
Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,500 per year for 5 years. Project L costs $25,000 and is expected to produce cash flows of $8,000 per year for 5 years. a. 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? Project L 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? Project S C. 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? Project S d. Calculate the two projects' PIs, assuming a cost of capital of 14%. Round your answers to two decimal places. Project S Project L
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