9-16Compute the (a) net present value, (b) internal rate of return (IRR), and (c) discounted pay- back period (DPB) for each of the following projects. The firm's required rate of return is 14 percent

Year Project Alpha Project Beta

0 $(270,000) $(300,000)

1 120,000 0

2 120,000 (80,000)

3 120,000 555,000

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

9-17Compute the (a) net present value, (b) internal rate of return (IRR), (c) modified internal rate of return (MIRR), and (d) discounted payback period (DPB) for each of the following projects. The firm's required rate of return is 13 percent.

Year Project AB Project LM Project UV

0 $(90,000) $(100,000) $ (96,500)

1 39,000 0 (55,000)

2 39,000 0 100,000

3 39,000 147,500 100,000

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

9-18Following are the estimated after-tax cash flows for twomutually exclusiveprojects:

Year Project S Project T

0 ($16,000) ($15,000)

1 14,000 2,000

2 6,000 18,600

The company's required rate of return is 16 per- cent. What is the internal rate of return (IRR) of the project(s) the company should purchase?