Compute the (a) Net present value , (b) Internal rate of return (IRR), (c) Modified internal rate

Question:

Compute the

(d) Discounted payback period (DPB) for each of the following projects. The firm?s required rate of return is 13 percent.

Which project(s) should be purchased if they are independent? Which project(s) should be purchased it they are mutually exclusive?

Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at... Internal Rate of Return
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment... Payback Period
Payback period method is a traditional method/ approach of capital budgeting. It is the simple and widely used quantitative method of Investment evaluation. Payback period is typically used to evaluate projects or investments before undergoing them,...

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