There are two projects: Project A and Project B a. Project A: CF0 = -6000; CF1-5...

There are two projects:

Project A and Project B

a. Project A: CF0 = -6000; CF1-5 = 2000; I/YR = 14. Calculate NPV, IRR, MIRR, Payback period, and discounted payback period for Project A.

Project B: CF0 = -18000; CF1-5 = 5600; I/YR = 14. Calculate NPV, IRR, MIRR, Payback period, and discounted payback period for Project B.

b. If the two projects are independent, which project(s) would be accepted?

c. If the two projects are mutually exclusive, which project would be accepted?

d. Is there conflict using both NPV and IRR approaches? If yes, why?

Expert Solution

jeff jeffy answered 2 years ago

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