B G H Greenback, Inc. Project Analysis Spreadsheet Listed Below are the cash flows for 2 projects we are considering at the firm Using these cash flows calculate the Payback NPV, IRR and MIRR for each Once that has done please answer the questions below in either this excel sheet of a separate word doc 1 2 3 4 5 6 7 8 g Discount Rate 15% MIRR Reinvestment Rate 15 4 Projected Cash Flows year 0 Project A -600 Project B 455 1 -225 5 6 2 - 150 145 3 -100 145 600 800 10 11 12 13 850 7 -180 50 8 100 30 9 100 50 TO 100 50 145 145 Payback Period Payback A Payback B 5 6 7 B NPV of A at 16% NPV of B at 15% IRR of A IRR of 1 MIRR of A MIRR of B Questions 1) If the company's cut off period for payback is 6 years should be company except each project based on (answer for both A and B): Payback Period? NPV? IRR? 2) Name one major flaw for the following decision enteria: Payback Period, Average Accounting Return, IRR? WACC Decision Criteria Capital Budgeting Chant Income Stmt Financial Ratios