Question: Given the following information about 4 mutually exclusive projects that are expected to be repeated infinitely, complete the table information (the shaded blanks). Assume that
Given the following information about 4 mutually exclusive projects that are expected to be repeated infinitely, complete the table information (the shaded blanks). Assume that all projects are equally risky and will have the same cost of capital. Which project should be chosen?
| A | B | C | D | |||||||
| CF0 | ($1,450,000) | ($3,540,000) | ($2,860,000) | ($1,600,000) | ||||||
| Inflows (equal for life of project) | $350,000 | $712,000 | ||||||||
| Project Life | 10 | 8 | 5 | |||||||
| NPV | $248,000.00 | |||||||||
| IRR | 18.00% | |||||||||
| MIRR | 16.80% | |||||||||
| PAYBACK (Yrs) | 3 | |||||||||
| Terminal Value | ||||||||||
| WACC | ||||||||||
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