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Your company is considering two projects, X and Y, whose costs and cash flows are shown below. Your company uses a discount rate of 9%
Your company is considering two projects, X and Y, whose costs and cash flows are shown below. Your company uses a discount rate of 9% to evaluate projects. PV of cash flow Cum CF PV of cash flow Cum CF Rate 9% Year 0 X $5,000 $1,000 $1,500 $2,000 $4,000 $5,000 $4,500 $1,500 $1,000 $500 Calculate the following for each of the 2 projects: Highlight all answers in yellow. NPV for project X: IRR for project X: MIRR for project X: Payback for project X: Discounted payback X: Equivalent annual annuity X: NPV for project Y: IRR for project Y: MIRR for project Y: Payback for project Y: Discounted payback Y: Equivalent annual annuity Y: If the projects are independent, which would you accept and why? If the projects are mutually exclusive, which would you accept and why
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