Question: Two projects have following projected cash flows: Years Project A CFs Project B CFs 0 -9,500 -16,400 1 6,000 3,500 2 5,500 4,000 3 -4,500

Two projects have following projected cash flows: Years Project A CFs Project B CFs 0 -9,500 -16,400 1 6,000 3,500 2 5,500 4,000 3 -4,500 5,000 4 4,500 -5,050 5 30% probability of 6 000; 70% probability of 10 000 6 60% probability of 9 000; 40% probability of 6 000

Find: Use 7% WACC 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

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!