Question: Given the following information about four mutually exclusive projects that will be repeated indefinitely, complete the table information (the shaded blanks). Assume that all projects
Given the following information about four mutually exclusive projects that will be repeated indefinitely, complete the table information (the shaded blanks). Assume that all projects are equally risky and will have the same cost of capital. Which project(s) should be chosen? SHOW WORK
|
|
A |
B |
C |
D |
|
CF0 |
($1,600,000) |
($2,225,000) |
($2,460,000) |
($1,500,000) |
|
Inflows |
$565,000 |
|
|
$800,000 |
|
Project Life |
5 |
3 |
4 |
|
|
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|
NPV |
|
$400,000 |
|
|
|
IRR |
|
|
|
27.77% |
|
MIRR |
18.63% |
|
|
|
|
EAA |
|
|
$165,000 |
|
|
Terminal Value |
|
|
|
|
|
WACC |
| |||
|
Capitalized Value |
|
|
|
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