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Braun Industries is considering the following mutually exclusive projects. Braun’s cost of capital is 9%.           ...

Braun Industries is considering the following mutually exclusive projects. Braun’s cost of capital is 9%.

           Year        Project A                Project B

            0             ($86,000)                ($86,000)

            1             $42,000                  $63,000

            2             $32,000                  $28,000

3             $12,900                  $8,000     

4             $12,200                  $3,000

5             $12,000                  $2,000

a.   Calculate each project’s NPV and IRR.

b.   Find the Payback Period for each project.

c.   Find the MIRR for each project.

d.   Which of these projects should Braun accept? Why?

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jeff jeffy answered 10 months ago
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