Chapter 11 - Name Nguyen Thi Lan Thanh Student ID 1236311...

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Name: Nguyen Thi Lan ThanhStudent ID: 1236311Class: Friday MorningCHAPTER 11Questions11.1/ How are project classifications used in the capital budgeting process?
11.7/ Why might be rational for a small firm that does not have access to the capital markets to use the payback method rather than the NPV method?
Problems11.7/ CAPITAL BUDGETING CRITERIA A firm with 14% WACC is evaluating two projects for this year’s capital budget. After-tax cash flows, including depreciation, are as follows:Project AProject Ba.Calculate NPV, IRR, MIRR, payback, and discounted payback for each project.b.Assuming the projects are independent, which one(s) would you recommend?c.If the projects are mutually exclusive, which would you recommend?d.Notice that the projects have the same cash flow timing pattern. Why is there a conflict between NPV and IRR?000,6$-000,2$000,18$-600,5$000,2$000,2$000,2$000,2$600,5$600,5$600,5$600,5$102345

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