Question
q11. CAPITAL BUDGETING CRITERIA A firm with a 14% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation, are
q11.
CAPITAL BUDGETING CRITERIA
A firm with a 14% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation, are as follows:
| 0 | 1 | 2 | 3 | 4 | 5 |
| Project M | -$15,000 | $5,000 | $5,000 | $5,000 | $5,000 | $5,000 |
| Project N | -$45,000 | $14,000 | $14,000 | $14,000 | $14,000 | $14,000 |
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Calculate NPV for each project. Round your answers to the nearest cent. Do not round your intermediate calculations. Project M $ Project N $
Calculate IRR for each project. Round your answers to two decimal places. Do not round your intermediate calculations. Project M % Project N %
Calculate MIRR for each project. Round your answers to two decimal places. Do not round your intermediate calculations. Project M % Project N %
Calculate payback for each project. Round your answers to two decimal places. Do not round your intermediate calculations. Project M years Project N years
Calculate discounted payback for each project. Round your answers to two decimal places. Do not round your intermediate calculations. Project M years Project N years
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Managerial Accounting
Authors: Karen W. Braun, Wendy M. Tietz
4th edition
978-0133428469, 013342846X, 133428370, 978-0133428377
