Question
Project S has a cost of $11,000 and is expected to produce benefits (cash flows) of $3,400 per year for 5 years. Project L costs
Project S has a cost of $11,000 and is expected to produce benefits (cash flows) of $3,400 per year for 5 years. Project L costs $23,000 and is expected to produce cash flows of $6,900 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 | $ |
Which project would be selected, assuming they are mutually exclusive? -Select-Project SProject LItem 3
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? -Select-Project SProject LItem 6
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? -Select-Project SProject LItem 9
Calculate the two projects' PIs, 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? -Select-Project SProject LItem 12
Which project should actually be selected? -Select-Project SProject L
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The Complete Direct Investing Handbook
Authors: Kirby Rosplock
1st Edition
1119094712, 978-1119094715
