A firm with a 13% WACC is evaluating two projects for this year’s capital budget. After tax cash flows, including depreciation, are as follows:
Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦.Ac€¦0Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦.1Ac€¦Ac€¦Ac€¦Ac€¦.2Ac€¦Ac€¦Ac€¦….3Ac€¦Ac€¦Ac€¦Ac€¦.4Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦.5
Project AAc€¦. $3,000Ac€¦Ac€¦..$1,000Ac€¦Ac€¦$1,000Ac€¦Ac€¦$1,000Ac€¦Ac€¦.$1,000Ac€¦Ac€¦$1,000
Project BAc€¦. $9,000Ac€¦Ac€¦..$2,800Ac€¦Ac€¦$2,800Ac€¦Ac€¦$2,800Ac€¦Ac€¦.$1,000Ac€¦Ac€¦$2,800
1. Calculate NPV for each project. Round your answers to the nearest cent.
Project A $_________
Project B $_________
Calculate IRR for each project. Round your answers to two decimal places.
Project A 19.86%
Project B 16.80%
Calculate MIRR for each project. Round your answers to two decimal places.
Project A _________%
Project B _________ %
Calculate payback for each project. Round your answers to two decimal places.
Project A 3 years
Project B _________ years
Calculate discounted payback for each project. Round your answers to two decimal places.
Project A 4.02 years
Project B _________ years