q20/21

Coughlin Motors is considering a project with the following expected cash flows: Project Cash Flows Year 0 -$3,771.00 $2,410.00 1 2 3 $1,759.00 ($52.00) $1,223.00 4. The project's WACC is 8.6 percent. What is the project's discounted payback? 0 2.77 years O 1.77 years O 3.11 years 0 2.61 years O 3.41 years A company is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below: Years 0 1 N 3 4 -865 1080 286 74 S 236 1989 463 L 49 -1389 0 The company's cost of capital is 8.5 percent, and it can obtain an unlimited amount of capital at that cost. What is the regular IRR (not MIRR) of the better project, that is, the project that the company should choose if it wants to maximize its stock price? O 64.73% O 72.73% O 69.73% O 56.57% 66 73%