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thx A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation, are as follows: 0
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A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation, are as follows: 0 2 3 4 5 + Project M Project N -$9,000 $3,000 $3,000 $3,000 $3,000 $3,000 -$27,000 $8,400 $8,400 $8,400 $8,400 $8,400 a. 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 b. Assuming the projects are independent, which one(s) would you recommend? Select c. If the projects are mutually exclusive, which would you recommend? Select- d. Notice that the projects have the same cash flow timing pattem. Why is there a conflict between NPV and IRR? SelectStep by Step Solution
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