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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. | |||||||
Rate | Year | X | PV of cash flow | Cumulative CF | Y | PV of cash flow | Cumulative CF |
9% | 0 | -$5,000 | -5000 | -5000 | -$5,000 | -5000 | -5000 |
1 | $1,000 | $4,500 | |||||
2 | $1,500 | $1,500 | |||||
3 | $2,000 | $1,000 | |||||
4 | $4,000 | $500 | |||||
Calculate the following for each of the 2 projects: | |||||||
Highlight all answers in yellow. | |||||||
NPV for project X: | NPV for project Y: | ||||||
IRR for project X: | IRR for project Y: | ||||||
MIRR for project X: | MIRR for project Y: | ||||||
Payback for project X: | Payback for project Y: | ||||||
Discounted payback X: | Discounted payback Y: | ||||||
Equivalent annual annuity X: | Equivalent annual annuity Y: | ||||||
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