In: Finance
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 M | -$18,000 | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 |
Project N | -$54,000 | $16,800 | $16,800 | $16,800 | $16,800 | $16,800 |
Calculate NPV for each project. Round your answers to the
nearest cent. Do not round your intermediate calculations.
Project M $
Project N $
Calculate IRR for each project. Round your answers to two
decimal places. Do not round your intermediate calculations.
Project M %
Project N %
Calculate MIRR for each project. Round your answers to two
decimal places. Do not round your intermediate calculations.
Project M %
Project N %
Calculate payback for each project. Round your answers to two
decimal places. Do not round your intermediate calculations.
Project M years
Project N years
Calculate discounted payback for each project. Round your
answers to two decimal places. Do not round your intermediate
calculations.
Project M years
Project N years