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(Quantitative Question - Show Work) Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year for
(Quantitative Question - Show Work) Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year for 5 years. Project L costs $25,000 and is expected to produce cash flows of $7,400 per year for 5 years. Assuming the cost of capital of 14%, a. Calculate the two projects' NPVs (round your answers to the nearest cent and draw a timeline) i. Project L's NPV is: $ ii. Project S's NPV is: $ b. Calculate the two projects' IRRS (round your answers to the second decimal place) i. Project L's NPV is: % ii. Project S's NPV is: % c. Which project (L or S) would be selected, assuming they are mutually exclusive, according to the i. NPV rule: Project ii. IRR rule: Project d. Which should actually be selected if the manager is maximizing stockholder wealth? Project (Quantitative Question - Show Work) Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year for 5 years. Project L costs $25,000 and is expected to produce cash flows of $7,400 per year for 5 years. Assuming the cost of capital of 14%, a. Calculate the two projects' NPVs (round your answers to the nearest cent and draw a timeline) i. Project L's NPV is: $ ii. Project S's NPV is: $ b. Calculate the two projects' IRRS (round your answers to the second decimal place) i. Project L's NPV is: % ii. Project S's NPV is: % c. Which project (L or S) would be selected, assuming they are mutually exclusive, according to the i. NPV rule: Project ii. IRR rule: Project d. Which should actually be selected if the manager is maximizing stockholder wealth? Project
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