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You are a financial analyst for the Brittle Company. The director of capital budgeting has asked you to analyze two proposed capital investments: Projects X

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You are a financial analyst for the Brittle Company. The director of capital budgeting has asked you to analyze two proposed capital investments: Projects X and Y. Each project has a cost of $10,000, and the cost of capital for each is 12%. The projects' expected net cash flows are shown in the table below. Expected Net Cash Flows Year Project Project Y 0 - $10,000 - $10,000 6,500 3,500 3,000 3,500 3,000 3,500 1,000 3,500 a. Use the Homework Student Workbook to calculate each project's net present value (NPV), internal rate of return (IRR), modified internal rate of return (MIRR), and profitability index (PI). b. Which project or projects should be accepted if they are independent? c. Which project or projects should be accepted if they are mutually exclusive? M RMRK To obtain the IRR w w w (TV och Now w here that the Tech M edmal Reef Return (MIRR Vechinews obtain cho 's Regnby finding ch a ma SO.123 Now,cach projects MIRR is the contrate that cases the of the TV to each projec t , obtain each po dvides p a r cs by it The Perfect s end the NPV calculated earlier

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