Question: Project P costs 15 000 and is expected to produce benefits

Project P costs $15,000 and is expected to produce benefits (cash flows) of $4,500 per year for five years. Project Q costs $37,500 and is expected to produce cash flows of $11,100 per year for five years.
a. Calculate the NPV, IRR, MIRR, discounted payback, and traditional pay- back period for each project, assuming a required rate of return of 14 percent.
b. If the projects are independent, which project(s) should be selected? If they are mutually exclusive projects, which project should be selected?


View Solution:


Sale on SolutionInn
Sales5
Views264
Comments
  • CreatedNovember 24, 2014
  • Files Included
Post your question
5000