NRJ & Co . is considering Projects S and L , whose cash flows are shown below.
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Question:
NRJ & Co is considering Projects S and L whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. Find the NPV IRR and Payback for each project at the three WACCs. Choose a project.
Year
CFS : $ $ $ $ $
CFL : $ $ $ $ $
a WACC
b WACC
c WACC
Evaluate both projects at the following three weighted average cost of capital:WACC of and
Calculate the Simple Payback. Use a discount rate of to calculate the
Discounted Payback for each project.
What is the MIRR of each project? Use as the rate for Compounding?
Which project would you ultimately choose and why justify your answer
Related Book For
Intermediate Financial Management
ISBN: 978-1111530266
11th edition
Authors: Eugene F. Brigham, Phillip R. Daves
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