DISCUSS QUESTION #3 (Refer to Handouts for Chapter 11 posted in Content) The following TWO projects are...

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Finance

DISCUSS QUESTION #3 (Refer to Handouts for Chapter 11 posted inContent)

The following TWO projects are being considered in this year'scapital budget.

PROJECT 1: Assume the Cost of Capital is 10% for thisproject

cash flows
yearproject
0-34,000
117,000
215,000
313,000

PROJECT 2: This project has a life of 3 years. The initialinvestment is $15,000 with annual cash inflows of $7,000. Assumethe Cost of Capital is 9% for this project.

REPLY POST: Question 3

1) Calculate the NPV for Project 1

2) Calculate the IRR and MIRR for Project 2

3) Based on your calculations, should these projects be acceptedor rejected?

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DISCUSS QUESTION #3 (Refer to Handouts for Chapter 11 posted inContent)The following TWO projects are being considered in this year'scapital budget.PROJECT 1: Assume the Cost of Capital is 10% for thisprojectcash flowsyearproject0-34,000117,000215,000313,000PROJECT 2: This project has a life of 3 years. The initialinvestment is $15,000 with annual cash inflows of $7,000. Assumethe Cost of Capital is 9% for this project.REPLY POST: Question 31) Calculate the NPV for Project 12) Calculate the IRR and MIRR for Project 23) Based on your calculations, should these projects be acceptedor rejected?

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