Question
Two projects have following projected cash flows: Years, Project A, CFs, Project B CFs 0,-9500, -16400 1, 6000, 3500 2, 5500, 4000 3, -4500, 5000
Two projects have following projected cash flows: Years, Project A, CFs, Project B CFs 0,-9500, -16400 1, 6000, 3500 2, 5500, 4000 3, -4500, 5000 4, 4500, -5050 5, 30% probability of 6 000; 70% probability of 10 000 6, 60% probability of 9 000; 40% probability of 6 000
WACC = 7%
Find: 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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