Question: PLEASE SHOW ALL WORK AND EXCEL FORMULAS Capital Budgeting Methods Project S has a cost of $10,000 and is expected to produce benefits (cash flows)

PLEASE SHOW ALL WORK AND EXCEL FORMULAS

Capital Budgeting Methods

Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,500 per year for 5 years. Project L costs $25,000 and is expected to produce cash flows of $8,000 per year for 5 years.

Calculate the two projects' NPVs, assuming a cost of capital of 14%. Round your answers to the nearest cent.

Project S $
Project L $

Which project would be selected, assuming they are mutually exclusive?

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?

Calculate the two projects' MIRRs, assuming a cost of capital of 14%. Round your answers to two decimal places.

Project S %
Project L %

Which project would be selected, assuming they are mutually exclusive? -Select-Project SProject LItem 9

Calculate the two projects' PIs, assuming a cost of capital of 14%. Round your answers to two decimal places.

Project S
Project L

Which project would be selected, assuming they are mutually exclusive?

Which project should actually be selected?

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