In: Finance
Assume the projects below are mutually exclusive and the WACC is 10%. Which project should be chosen based on each of the following decision rules: NPV, IRR, MIRR, and Payback? Overall, which project should be chosen?
Year |
Project A |
Project B |
0 |
-$75,000.00 |
-$110,000.00 |
1 |
$46,000.00 |
$50,000.00 |
2 |
$24,000.00 |
$35,000.00 |
3 |
$10,000.00 |
$20,000.00 |
4 |
$10,000.00 |
$10,000.00 |
5 |
$6,000.00 |
$10,000.00 |
6 |
$4,000.00 |
$30,000.00 |