Compute NPV, IRR, MIRR, Profitability Index, Payback and Discounted Payback. Decide based on each criterion where to invest, assuming that the payback policy is 3 years.

I need this solved on a piece of paper, with the relevant formula's being used, since tomorrow is my exam. Please do not use any excel sheet, or any direct calculation performed in excel and help me solve this on a piece of paper. Thankyou
It would be great also if all the formula's for NPV,IRR,PI,Payback & DP are shown as further the question is solved. Thankyou

With your financial calculator, enter the following:

N = 23; I/YR = YTM = 11%; PMT = 0.09 ´ 1,000 = 90; FV = 1000; PV = V_B = ?

PV = $834.67.

Transcribed Image Text:

NPV Your division is considering two mutually exclusive projects with the following cash flows (in millions): Project A Project B -$25 -$20 $5 $10 2 + $10 $9 3 $17 $6 Compute NPV, IRR, MIRR, Profitability Index, Payback and Discounted Payback. Decide based on each criterion where to invest, assuming that the payback policy is 3 years. NPV Your division is considering two mutually exclusive projects with the following cash flows (in millions): Project A Project B -$25 -$20 $5 $10 2 + $10 $9 3 $17 $6 Compute NPV, IRR, MIRR, Profitability Index, Payback and Discounted Payback. Decide based on each criterion where to invest, assuming that the payback policy is 3 years.

Answer rating: 100% (QA)

Computation of Nov of projects i Required Rate of Return Project Ai yeau L 2 3 1221 cash flows Proj... View the full answer