Question
XYZ, a medium-sized metal fabricator that is currently contemplating two projects: Project A requires an initial investment of $42,000; project B requires an initial investment
XYZ, a medium-sized metal fabricator that is currently contemplating two projects: Project A requires an initial investment of $42,000; project B requires an initial investment of $45,000. The cost of capital is 10% and the projected relevant cash flows for the two projects are as flows:
| Year | Operating cash inflows | ||
|
| Project A | Project B | |
| 1 | $14,000 | $28,000 | |
| 2 | 14,000 | 12,000 | |
| 3 | 14,000 | 10,000 | |
| 4 | 14,000 | 10,000 | |
| 5 | 14,000 | 10,000 | |
What are Projects' NPV?
What are projects' IRR?
What are projects' MIRR if the refinance rate is the same as the cost of capital?
What are projects' profitability indices?
What are projects' payback periods?
What are projects' discounted payback periods?
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Finance For Small And Entrepreneurial Business
Authors: Richard Roberts
1st Edition
0415721008, 978-0415721004
