Q75:

Given the following information about four mutually exclusive projects that will be repeated indefinitely, complete the table information (the shaded blanks). Assume that all projects are equally risky and will have the same cost of capital. A and B are mutually exclusive of each other, but independent of C and D, which are mutually exclusive of each other. Which project(s) should be chosen? D CFO ($1,850,000) ($2,700,000) ($2,650,000) ($1,800,000) Inflows $650,000 $700,000 Project Life NPV $850,000 $550,000 IRR 22.50% MIRR 19.00% Terminal Value WACC Given the following information about four mutually exclusive projects that will be repeated indefinitely, complete the table information (the shaded blanks). Assume that all projects are equally risky and will have the same cost of capital. A and B are mutually exclusive of each other, but independent of C and D, which are mutually exclusive of each other. Which project(s) should be chosen? D CFO ($1,850,000) ($2,700,000) ($2,650,000) ($1,800,000) Inflows $650,000 $700,000 Project Life NPV $850,000 $550,000 IRR 22.50% MIRR 19.00% Terminal Value WACC