A firm with a 14% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation, are as follows: 0 1 2 3 4 5 Project A -$30,000 $10,000 $10,000 $10,000...

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A firm with a 14% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation, are as follows:

Project A	-$30,000	$10,000	$10,000	$10,000	$10,000	$10,000
Project B	-$90,000	$28,000	$28,000	$28,000	$28,000	$28,000

a. Calculate NPV for each project. Round your answers to the nearest cent.
Project A $
Project B $

b. Calculate IRR for each project. Round your answers to two decimal places.
Project A %
Project B %

c. Calculate MIRR for each project. Round your answers to two decimal places.
Project A %
Project B %

d. Calculate payback for each project. Round your answers to two decimal places.
Project A years
Project B years

e. Calculate discounted payback for each project. Round your answers to two decimal places.
Project A years
Project B years

Answered Same Day Dec 31, 2021

Solution

David answered on Dec 31 2021

121 Votes

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