Question
Project S has a cost of $9,000 and is expected to produce benefits (cash flows) of $2,700 per year for 5 years. Project L costs
Project S has a cost of $9,000 and is expected to produce benefits (cash flows) of $2,700 per year for 5 years. Project L costs $26,000 and is expected to produce cash flows of $7,100 per year for 5 years.
Calculate the two projects' NPVs, assuming a cost of capital of 10%. Round your answers to the nearest cent.
Project S
Project L
Which project would be selected, assuming they are mutually exclusive?
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?
Calculate the two projects' MIRRs, assuming a cost of capital of 10%. Round your answers to two decimal places.
Project S
Project L
Which project would be selected, assuming they are mutually exclusive?
Calculate the two projects' PIs, assuming a cost of capital of 10%. 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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The Little Book Of Market Myths: How To Profit By Avoiding The Investing Mistakes Everyone Else Makes
Authors: Kenneth L. Fisher
1st Edition
1118445015, 978-1118445013
