Question
Two projects have following projected cash flows: Years Project A CFs Project B CFs 0 -9,500 -16,400 1 6,000 3,500 2 5,500 4,000 3 -4,500
Two projects have following projected cash flows: Years Project A CFs Project B CFs 0 -9,500 -16,400 1 6,000 3,500 2 5,500 4,000 3 -4,500 5,000 4 4,500 -5,050 5 30% probability of 6 000; 70% probability of 10 000 6 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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