Question: Year: Project A Project B Project C Product D Project E 0 (10,000) (15,000) (20,000) (50,000) (100,000) 1 4,000 8,000 7,000 10,000 33,000 2 4,000
Year: Project A Project B Project C Product D Project E 0 (10,000) (15,000) (20,000) (50,000) (100,000) 1 4,000 8,000 7,000 10,000 33,000 2 4,000 6,000 7,000 15,000 40,000 3 4,000 4,000 7,000 (5,000) 33,000 4 ------ 2,000 7,000 20,000 40,000 5 ------ ----- ------ 10,000 (10,000) 6 ------ ------ ------ (1,000) ------ 1. Calculate the payback of each project. 2. Calculate the discounted payback of each project (assume a cost-of-capital of 10 percent). 3. Calculate the NPV of each project (again, assume 10 percent). 4. Calculate the PI of each project (again, assume 10 percent). 5. Calculate the MIRR of each project. 6. Calculate the equivalent annual annuity of each project.
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