Question: Two projects have following projected cash flows: Years, Project A, CFs, Project B CFs 0,-9500, -16400 1, 6000, 3500 2, 5500, 4000 3, -4500, 5000

Two projects have following projected cash flows: Years, Project A, CFs, Project B CFs 0,-9500, -16400 1, 6000, 3500 2, 5500, 4000 3, -4500, 5000 4, 4500, -5050 5, 30% probability of 6 000; 70% probability of 10 000 6, 60% probability of 9 000; 40% probability of 6 000

WACC = 7%

Find: Project's A discounted bayback period Project's B discounted bayback period

Project's A NPV Project's B NPV

Profitability index for project A Profitability index for project A

IRR for A IRR for B

Project's A Equivalent Annual Annuity Project's B Equivalent Annual Annuity

Project's A MIRR. For investemnt rate use IRR rate Project's B MIRR. For investemnt rate use IRR rate

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