Calculate the PIR for both projects

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Question - 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

Required -

a. Calculate the NPV for both projects (Using MICROSOFT word).

b. Calculate the IRR for both projects. (Using MICROSOFT word).

c. Calculate the MIRR for both projects. (Using MICROSOFT word).

d. Calculate the PIR for both projects. (Using MICROSOFT word).

e. Explain briefly which project you would select and why. (Using MICROSOFT word).

Reference no: EM132948116

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