Capital budgeting criteria A firm with a 13% WACC is evaluating two projects for this...
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Accounting
Capital budgeting criteria
A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation, are as follows:
0 | 1 | 2 | 3 | 4 | 5 |
Project M | -$3,000 | $1,000 | $1,000 | $1,000 | $1,000 | $1,000 |
Project N | -$9,000 | $2,800 | $2,800 | $2,800 | $2,800 | $2,800 |
Calculate NPV for each project. Round your answers to the nearest cent. Do not round your intermediate calculations. Project M $ Project N $
Calculate IRR for each project. Round your answers to two decimal places. Do not round your intermediate calculations. Project M % Project N %
Calculate MIRR for each project. Round your answers to two decimal places. Do not round your intermediate calculations. Project M % Project N %
Calculate payback for each project. Round your answers to two decimal places. Do not round your intermediate calculations. Project M years Project N years
Calculate discounted payback for each project. Round your answers to two decimal places. Do not round your intermediate calculations. Project M years Project N years
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