Question: Problem 10-10 Capital Budgeting Methods Project S has a cost of $9,000 and is expected to produce benefits (cash flows) of $2,700 per year for

Problem 10-10 Capital Budgeting Methods

Project S has a cost of $9,000 and is expected to produce benefits (cash flows) of $2,700 per year for 5 years. Project L costs $26,000 and is expected to produce cash flows of $7,100 per year for 5 years.

Calculate the two projects' NPVs, assuming a cost of capital of 10%. Round your answers to the nearest cent.

Project S	$
Project L	$

Which project would be selected, assuming they are mutually exclusive? -Select-Project SProject LItem 3

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-Project SProject LItem 6

Calculate the two projects' MIRRs, assuming a cost of capital of 10%. 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 10%. Round your answers to two decimal places.

Project S
Project L

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