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%.
Which project would be selected, assuming they are mutually exclusive?
Calculate the two projects' IRRs.
Calculate the two projects' MIRRs, assuming a cost of capital of 14%.
Calculate the two projects' PIs, assuming a cost of capital of 14%. Do not round intermediate calculations.
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Financial Management For Nurse Managers Merging The Heart With The Dollar
Authors: J. Michael Leger
5th Edition
1284230937, 9781284230932
