Hamlin Corporation, Inc. (HCI) is considering two mutually exclusive capital projects (that is, HCI may accept only one of the two projects)..

HCI has a 7% WACC;

HCI has the ability to invest available cash flows at its WACC;

Each project has 7-year life;

Cash flows for each of the two projects follow:

TASKS: Please -

- Write a narrative that compares and contrasts the characteristics and the calculation of:

i. a bonds yield-to-maturity (YTM) and those of the IRR.

ii. a bond investors true yield and those of the MIRR.

2 4 Project A -$300 -$387 193-$100 $600 $600 850$180 Project B-$405 $134 $134 134 134 $134 $134 $0 2 4 Project A -$300 -$387 193-$100 $600 $600 850$180 Project B-$405 $134 $134 134 134 $134 $134 $0