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Your division is considering two investment projects, each of which requires an up - front expenditure of $ 2 0 million. They are mutually exclusive.
Your division is considering two investment projects, each of which requires an upfront expenditure of $ million. They are
mutually exclusive. You estimate that the investments will produce the following net cash flows:
A What are the two projects' net present values, assuming the cost of capital is What are the acceptreject decisions?
Acceptable
@ WACC
B What are the two projects' IRRs at these same costs of capital? What are the acceptreject decisions?
C What are the two projects' MIRRs at these same costs of capital? What are the acceptreject decisions?
D What are the two projects' Profitablity Indexes at these same costs of capital? What are the acceptreject decisions?
E What are the two projects' Paybacks? What is the preferred option?
Please include excel equations.
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