Reference no: EM132895869
Consider the following TWO 5-year projects with 8% cost of capital.
PROJECT A
Initial investment = 55,000
Expected operating cash flows =
20,000 - 10,000 - 30,000 - 5,000 - 5,000
PROJECT B
Initial investment = 59,000
Expected operating cash flows =
35,000 - 15,000 - 10,000 - 7,000 - 6,000
Problem a. Calculate the NPV for both projects (Using MICROSOFT word)
Problem b. Calculate the IRR for both projects. (Using MICROSOFT word)
Problem c. Calculate the MIRR for both projects. (Using MICROSOFT word)
Problem d. Calculate the PIR for both projects. (Using MICROSOFT word)
Problem e. Explain briefly which project you would select and why.