Compute the (a) NPV, (b) IRR, (c) MIRR, and (d) discounted payback for the following independent capital budgeting projects (r 9 ) Which project(s), should the company purchase Why Project T Project U (S10,000) Year (S8,000) 2,000 9,000 1,000 5,000 (3,100) 7,000 2 3,...

Project T NPV 8000 2000 109 1000 1092 7000 1093 81826 IRR 8000 2000r 10 ...

Compute the (a) NPV, (b) IRR, (c) MIRR, and (d) discounted payback for the following independent capital

Question:

Compute the (a) NPV, (b) IRR, (c) MIRR, and (d) discounted payback for the following independent projects. (r=9%)

Project T Project U (S10,000) Year (S8,000) 2,000 9,000 1,000 5,000 (3,100) 7,000 2. 3,

Which project(s), should the company purchase? Why?

Capital Budgeting
Capital budgeting is a practice or method of analyzing investment decisions in capital expenditure, which is incurred at a point of time but benefits are yielded in future usually after one year or more, and incurred to obtain or improve the...