What is project whiskey discounted payback period

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Reference no: EM132028979

Your company is considering the following three projects.

CF0 CF1 CF2 CF3 CF4

Project Whiskey -100 80 20 80 20

Project Tango -100 20 80 20 80

Project Foxtrot -100 50 50 50 50

1) What is Project Foxtrot’s MIRR? And, should the project be accepted if we used MIRR as the basis of decision? Assume that the cost of capital is 8%. Show your calculator inputs (CF0=?, CF1=?, CF2=?, CF3=?, CF4=?, etc.) to receive full credit.

2) What is Project Whiskey’s payback period? Should the project be accepted if the maximum payback period is 3.90 years? Show your work to receive full credit.

3) What is Project Whiskey’s discounted payback period if our WACC is 8%? Should the project be accepted if the maximum payback period is 4.05 years? Show your work to receive full credit.

Reference no: EM132028979

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