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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
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 s 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? 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 14%. 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' P is, 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? Which project should actually be selected
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