Question: 8. Given the following information about 4 mutually exclusive projects that are expected to be repeated infinitely, complete the table information (the shaded blanks). Assume
8. Given the following information about 4 mutually exclusive projects that are expected to be repeated infinitely, complete the table information (the shaded blanks). Assume that all projects are equally risky and will have the same cost of capital. Which project should be chosen? CF. Inflows (equal for life of the project) Project Life NPV IRR MIRR PAYBACK (Yrs) Terminal Value WACC A B C D ($1,600,000) ($2,225,000 ($2,460,000) ($1,500,000) $565,000 $1.110,117,18 $984,000.00 $712,000 5 3 4 3 $337.229.77 $350,000 $403.989.74 $151,758.76 22.52% 23.2396 21.86% 20.0096 18.50% 19.74% 18.47% 17.78% 2.00 2.5 2.11 $8,738,623/52 $3,820,283.50 $4,846,139.79 $2.450,716.84 14.05% 14.05% 14.0596 14,0596 2.83
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
