Reference no: EM13596699
A firm with a 13% 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 A -$3,000 $1,000 $1,000 $1,000 $1,000 $1,000
Project B -$9,000 $2,800 $2,800 $2,800 $2,800 $2,800
a.Calculate NPV for each project. Round your answers to the nearest cent.
b.Calculate IRR for each project. Round your answers to two decimal places.
c.Calculate MIRR for each project. Round your answers to two decimal places.
d.Calculate payback for each project. Round your answers to two decimal places.
- Project A years
- Project B years
e.Calculate discounted payback for each project. Round your answers to two decimal places.
- Project A years
- Project B years