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Regards, I need help with this exercise of my Finance class, could you help me? Thank you very much. is 5th year EXAMPLE CAPITAL BUDGETING
Regards, I need help with this exercise of my Finance class, could you help me? Thank you very much.
is 5th year
EXAMPLE CAPITAL BUDGETING The following data pertains to these projects Project Project X. Cost $ 10,000 $ 10,000 $ 10,000 $ 10,000 Cost of capital 10% 10% 18% 15% Years Expected net cash flow $(10,000) $ 6,500 $ 3,000 $ 3,000 $ 1,000 $ 3,500 E(NCF) $(10,000) $(10,000) $6,500 E(NCF) $(10,000) $3,500 $3,500 $3,500 $3,000 $3,500 $3,500 $3,500 $4,000 $3,000 $3,500 $1,000 $3,500 $4,000 $3,500 1) Find Payback period Net present value (NPV) Internal rate of return (IRR) Modified internal rate of return (MIRR) 2.17 2.86 2.17 2.86 $1,325 $1,095 $4.71 $(7.58) 18% 15% 4) If cost of capital change to What project do you recommend, and why? Complete the question? 5% o1234Step by Step Solution
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