Please calculate the payback period, IRR, MIRR, NPV, and PI for
the following two mutually exclusive projects. The required rate of
return is 15% and the target payback is 4 years. Explain which
project is preferable under each of the four capital budgeting
methods mentioned above:
Table 1
Cash flows for two mutually exclusive projects
Year
Investment A
Investment B
0
-$5,000,000
-5,000,000
1
$1,500,000
$1,250,000
2
$1,500,000
$1,250,000
3
$1,500,000
$1,250,000
4
$1,500,000
$1,250,000
5
$1,500,000
$1,250,000
6
$1,500,000...