Question: ..ooo AT&T 6:58 PM Problem 12-10 Capital Budgeting Methods Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of
..ooo AT&T 6:58 PM Problem 12-10 Capital Budgeting Methods Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year for 5 years. Project L costs $25,000 and is expected to produce cash flows of $7,300 per year for 5 years. a. Calculate the two projects' NPVs, assuming a cost of capital of 12%. Round your answers to the nearest cent. Project S Project L Which project would be selected, assuming they are mutually exclusive? Select b. Calculate the two projects' IRRs. Round your answers to two decimal places. Project S Project L Which project would be selected, assuming they are mutually exclusive? Select c. Calculate the two projects' MIRRs assuming a cost of capital of 12%. Round your answers to two decimal places. Project S Project L
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