Question
Using a WACC of 15%, apply four capital budgeting techniques to evaluate the project, assuming the Free Cash Flows are as follows: Years Free Cash
Using a WACC of 15%, apply four capital budgeting techniques to evaluate the project, assuming the Free Cash Flows are as follows: Years Free Cash Flows 0 $ (252,000.00) 1 $ 118,625.00 2 $ 127,125.00 3 $ 181,000.00 The four techniques are NPV, IRR, MIRR, and discounted Payback. Assume the reinvestment rate to be 8% for the MIRR. Also, assume that the business will only accept projects with a payback period of two and half years or less.Present your findings in a report to the CEO with recommendations as to whether the project should be accepted or rejected based on the four criteria. Your analysis should include a discussion of the decision-making rules for each method.
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