Question: Lonestar International has identified two mutually exclusive projects and the free cash flows associated with each appear below. Assume a 10 percent discount rate. Table

Lonestar International has identified two mutually exclusive projects and the free cash flows associated with each appear below. Assume a 10 percent discount rate.

Table 2: Projected free cash flows for projects C and D.

Lonestar International has identified two mutually exclusive projects and the free cash

For each project, calculate the:

Regular Payback Period.
NPV.
IRR.

Year D 0 ($50,000) ($50,000) 1 14,500 2 14,500 3 14,500 4 14,500 5 14,500 90,000

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