A firm with 14 percent WACC is evaluating two projects for this year's capital budget. After-tax cash

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A firm with 14 percent WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation, are as follows:

A) Calculate NPV, IRR, MIRR, payback, and discounted payback for each project.
B) Assuming the projects are independent, which one or ones would you recommend?
C) If the projects are mutually exclusive, which would yourecommend?

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Fundamentals of Financial Management

ISBN: 978-0324664553

Concise 6th Edition

Authors: Eugene F. Brigham, Joel F. Houston

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Question Posted: Aug 05, 2013 03:23 AM

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A firm with 14 percent WACC is evaluating two projects for this year's capital budget. After-tax cash

Question:

台表 5 Project A -S6,000 S2,000 S2,000 2,000 S2,000 $2,000 Project B S18,000 S5,600 S5,600 S5,600 S5,600 $5,600 S5.600 S5,600

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a Project A CF 0 6000 CF 15 2000 IYR 14 Solve for NPV A 86616 IRR A 1986 Using a financial calculato...View the full answer

Fundamentals of Financial Management

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