Reference no: EM132495670
Question 1: Capital Budgeting Methods Project 5 has a cost of $9,000 and is expected to produce bene?ts (cash flows) of $2,700 per year for 5 years. Project L costs $26,000 and is expected to produce cash ?ows of $7,100 per year for 5 years. Calculate the two projects' NPVs, assuming a cost of capital of 10%. Do not round intermediate calculations. Round your answers to the nearest cent.
Project 5: $ 0
Question 2: Project L: $ 0 Which project would be selected, assuming they are mutually exclusive? Based on the NPV values, 9 would be selected. Calculate the two projects' IRRs. Do not round intermediate calculations. Round your answers to two decimal places.
Project 5: 0 %
Question 3: Project L: o % Which project would be selected, assuming they are mutually exclusive? Based on the IRR values, 9 would be selected. Calculate the two projects' MIRRs, assuming a cost of capital of 10%. Do not round intermediate calculations. Round your answers to two decimal places.
Question 4: Project 5: 0 % Project L: 9 % Which project would be selected, assuming they are mutually exclusive? Based on the MIRR values, 9 would be selected. Calculate the two projects' PIs, assuming a cost of capital of 10%. Do not round intermediate calculations. Round your answers to three decimal places.
Question 5: Project 5: 0 Project L: 9 Which project would be selected, assuming they are mutually exclusive? Based on the PI values, 9 would be selected. Which project should actually be selected?