Question: (ALL WORK MOST BE DONE IN EXCEL)(SHOW YOUR WORK) Dude Corporation is considering two mutually exclusive capital projects with the following cash flows: YEAR PROJECT
(ALL WORK MOST BE DONE IN EXCEL)(SHOW YOUR WORK)
Dude Corporation is considering two mutually exclusive capital projects with the following cash flows:
| YEAR | PROJECT A | PROJECT B |
| 0 | ($165,000) | ($165,000) |
| 1 | $25,000 | $90,000 |
| 2 | $25,000 | $80,000 |
| 3 | $50,000 | $60,000 |
| 4 | $50,000 | $40,000 |
| 5 | $225,000 | $30,000 |
- Calculate the IRR, MIRR and NPV for each project. Assume Dude Corporations WACC is 12.5%
- Assuming the projects are mutually exclusive (can only investment in one), explain which project should be selected and why.
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