Question: Blue Wolf Inc., is considering two mutually investments. Below are the projects expected net cash flows A) If each projects cost of capital is 14%,
Blue Wolf Inc., is considering two mutually investments. Below are the projects expected net cash flows A) If each projects cost of capital is 14%, which project should be selected? If the cost of capital is 14%, what project is proper choice? B) What is each projects RR? We can find the internal rate of return using Excels IRR functions IRR Project A = IRR Project B = C) What is each projects MRR at a cost of capital of 14%? At r = 18%? D) What is the regular payback period for these two projects? E) At a cost of capital of 14% what is the discounted payback period for these two projects? F) What is the profitability index for each project if the cost of capital is 14%
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