Question
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 $8,000 per year for 5 years.
- Calculate the two projects' NPVs, assuming a cost of capital of 14%. Round your answers to the nearest cent.
Project S _________$
Project L _________$
Calculate the two projects' IRRs. Round your answers to two decimal places.
Project S _____ %
Project L _____%
Calculate the two projects' MIRRs, assuming a cost of capital of 14%. Round your answers to two decimal places.
Project S _____ %
Project L _____ %
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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