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Two projects have following projected cash flows: Period Project ABC Project XYZ T 0 -5 000 -10 000 T 1 1 000 3 000 T

  1. Two projects have following projected cash flows:

Period

Project ABC

Project XYZ

T0

-5 000

-10 000

T1

1 000

3 000

T2

-2 000

4 000

T3

4 000

-3 500

T4

5 000

6 000

T5

7 000

Use 8% WACC

  1. Find discounted payback period for both projects
  2. Find NPV for both projects
  3. Find profitability index for both projects
  4. Find IRR for both projects
  5. Find equivalent annual annuity for both projects
  6. Find MIRR for both projects. Use 12% as investment rate.

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