Problem 10-10 Capital Budgeting Methods Project S has a cost of $11,000 and is expected to produce benefits...

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Finance

Problem 10-10
Capital Budgeting Methods
Project S has a cost of $11,000 and is expected to producebenefits (cash flows) of $3,400 per year for 5 years. Project Lcosts $23,000 and is expected to produce cash flows of $6,900 peryear for 5 years.
Calculate the two projects' NPVs, assuming a cost of capital of14%. Round your answers to the nearest cent.
Project S $
Project L $
Which project would be selected, assuming they are mutuallyexclusive?
-Select-Project S or Project L
Calculate the two projects' IRRs. Round your answers to twodecimal places.
Project S %
Project L %
Which project would be selected, assuming they are mutuallyexclusive?
-Select-Project S or Project LI
Calculate the two projects' MIRRs, assuming a cost of capital of14%. Round your answers to two decimal places.
Project S %
Project L %
Which project would be selected, assuming they are mutuallyexclusive?
-Select-Project S or Project L
Calculate the two projects' PIs, assuming a cost of capital of14%. Round your answers to two decimal places.
Project S
Project L
Which project would be selected, assuming they are mutuallyexclusive?
-Select- Project S or Project L
Which project should actually be selected?
-Select-Project S or Project L

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Problem 10-10Capital Budgeting MethodsProject S has a cost of $11,000 and is expected to producebenefits (cash flows) of $3,400 per year for 5 years. Project Lcosts $23,000 and is expected to produce cash flows of $6,900 peryear for 5 years.Calculate the two projects' NPVs, assuming a cost of capital of14%. Round your answers to the nearest cent.Project S$ Project L$ Which project would be selected, assuming they are mutuallyexclusive?-Select-Project S or Project LCalculate the two projects' IRRs. Round your answers to twodecimal places.Project S%Project L%Which project would be selected, assuming they are mutuallyexclusive?-Select-Project S or Project LICalculate the two projects' MIRRs, assuming a cost of capital of14%. Round your answers to two decimal places.Project S%Project L%Which project would be selected, assuming they are mutuallyexclusive?-Select-Project S or Project LCalculate the two projects' PIs, assuming a cost of capital of14%. Round your answers to two decimal places.Project S Project L Which project would be selected, assuming they are mutuallyexclusive?-Select- Project S or Project LWhich project should actually be selected?-Select-Project S or Project L