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Two projects have following projected cash flows: Years Project 0 1 2 3 4 5 6 A: -9500 6000 5500 -4500 4500 B: -16400 3500
Two projects have following projected cash flows: | |||||||
Years | |||||||
Project | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
A: | -9500 | 6000 | 5500 | -4500 | 4500 | ||
B: | -16400 | 3500 | 4000 | 5000 | -5050 | 30% probability of 6 000; 70% probability of 10 000 | 60% probability of 9 000; 40% probability of 6 000 |
Find: | |||||||
Use 7% WACC | |||||||
Project's A discounted bayback period | |||||||
Project's B discounted bayback period | |||||||
Project's A NPV | |||||||
Project's B NPV | |||||||
Profitability index for project A | |||||||
Profitability index for project A | |||||||
IRR for A | |||||||
IRR for B | |||||||
Project's A Equivalent Annual Annuity | |||||||
Project's B Equivalent Annual Annuity | |||||||
Project's A MIRR. For investemnt rate use IRR rate | |||||||
Project's B MIRR. For investemnt rate use IRR rate |
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