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Ch 11-CB I (Homework - from EOC Problems)
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
Project N
-$6,000 $2,000 $2,000 $2,000 $2,000 $2,000
-$18,000 $5,600 $5,600 $5,600 $5,600 $5,600
a. Calculate NPV for each project. Do not round intermediate calculations. Round your answers to the nearest cent.
Project M: $
Project N: $
Calculate IRR for each project. Do not round intermediate calculations. Round your answers to two decimal places.
Project M:
%
Project N:
%
Calculate MIRR for each project. Do not round intermediate calculations. Round your answers to two decimal places.
Project M:
%
Project N:
%
Calculate payback for each project. Do not round intermediate calculations. Round your answers to two decimal places.
Project M:
years
Project N:
years
Calculate discounted payback for each project. Do not round intermediate calculations. Round your answers to two decimal places.
Project M:
years
Project N:
years