Question: I was wondering if i could get some help with this? i'm confused how is their not enough information? View Help AaBbcc Aalbod AaBC ABC
View Help AaBbcc Aalbod AaBC ABC AaBbc ABCD ABCD AaBb CcDY ABCD Aal T Normal 1 No Spac. Heading! Heading 2 Title Subtitle Subtle Em. Emphasis Intense E. Stre graph Styles XL2011 Capital Budgeting Assignment For the following two projects, determine the 1. Payback Period 2. Discounted Payback 3. Net Present Value 4. Profitability Index (Benefit Cost Ratio) 5. Internal Rate of Return 6. Modified Internal Rate of Return Project A Project B Year Cash Flow Net Income Cash Flow Net Income 0 1 2 3 4 Risk Index 5,000 5,000 5000 5,000 (15,000) 6,000 6,000 6.000 6,000 3,000 5.000 7,000 11,000 (19,000) 4,000 6,000 8,000 12,000 1.80 -60 The firm's cost of capital ko is 15% and the risk free rate Reis 10%. The firm assesses risk and assigns a risk index to determine a risk adjusted discount rate. An index of 1.0 would be assigned to an average risk project. To determine risk adjusted rates the firm uses the following equation: Risk Adjusted Rate (RADR) - Re+ [Risk Index (ko - R.) Task: Rank the projects in accordance with each method of analysis. (G LG View Help AaBbcc Aalbod AaBC ABC AaBbc ABCD ABCD AaBb CcDY ABCD Aal T Normal 1 No Spac. Heading! Heading 2 Title Subtitle Subtle Em. Emphasis Intense E. Stre graph Styles XL2011 Capital Budgeting Assignment For the following two projects, determine the 1. Payback Period 2. Discounted Payback 3. Net Present Value 4. Profitability Index (Benefit Cost Ratio) 5. Internal Rate of Return 6. Modified Internal Rate of Return Project A Project B Year Cash Flow Net Income Cash Flow Net Income 0 1 2 3 4 Risk Index 5,000 5,000 5000 5,000 (15,000) 6,000 6,000 6.000 6,000 3,000 5.000 7,000 11,000 (19,000) 4,000 6,000 8,000 12,000 1.80 -60 The firm's cost of capital ko is 15% and the risk free rate Reis 10%. The firm assesses risk and assigns a risk index to determine a risk adjusted discount rate. An index of 1.0 would be assigned to an average risk project. To determine risk adjusted rates the firm uses the following equation: Risk Adjusted Rate (RADR) - Re+ [Risk Index (ko - R.) Task: Rank the projects in accordance with each method of analysis. (G LG
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