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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
- 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
- Find discounted payback period for both projects
- Find NPV for both projects
- Find profitability index for both projects
- Find IRR for both projects
- Find equivalent annual annuity for both projects
- Find MIRR for both projects. Use 12% as investment rate.
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