FIN 3600
Module 6 Assignment 2: Applying Capital Budgeting Techniques to Analyze Projects
Name:
For full credit, you must show your work
Main Capital Incorporated is considering two mutually exclusive projects. The companys discount rate is 10% and its payback period is 3 years. Using excel, calculate the payback period, NPV and IRR for each project. Determine whether Main Capital should accept or reject the projects under each technique. Explain why.
						Cash Flows	Project A	Project B
						Initial cash outflow	-400,000	-600,000
						Yr 1	55,000	300,000
						Yr 2	55,000	300,000
						Yr 3	55,000	50,000
Yr 4	225,000	50,000
Yr 5	225,000	49,000