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Provides a thorough and detailed synthesis of the purpose of their report, the results of their financial analysis of the company's short- and long-term capital

Provides a thorough and detailed synthesis of the purpose of their report, the results of their financial analysis of the company's short- and long-term capital budget needs, and their recommendations for how the company can raise money in the short-term and long-term to continue to add value to the organization.

Capital Budgeting Criteria

Year

0

1

2

3

4

5

6

7

Project A

($300)

($387)

($193)

($100)

$600

$600

$850

($180)

Project B

($405)

($134)

$134

$134

$134

$134

$134

$0

Difference

($105)

($521)

($327)

($234)

$466

$466

$716

($180)

WACC

11%

WACC

18%

NPV @ 11%

NPV @ 18%

Project A

$240.64

Project A

$2.66

Project B

($79.55)

Project B

($163.44)

IRR @ 11%

Project A

18.10%

Project B

MIRR @ 11%

MIRR @ 18%

Project A

14.59%

Project A

18.05%

Project B

16.46%

Project B

20.49%

image text in transcribed
Comparison Project A vs Project B $1,000 $800 $ 600 $400 $200 So 1 ($200) 2 W 4 5 7 ($400) ($600) Series 1 Series 2

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