HW4 - Which of the two projects would you select? 2....

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Homework #4 BUS241 Capital Budgeting (Chapter 8) 1. Consider the two mutually exclusive projects: Project A Project B Time Cash Flow Time Cash Flow 0 $(500,000.00) 0 $ (500,000.00) 1 $ 0 1 $ 300,000.00 2 $ 100,000.00 2 $ 250,000.00 3 $ 150,000.00 3 $ 150,000.00 4 $ 250,000.00 4 $ 100,000.00 5 $ 300,000.00 5 $ 0 Assume an opportunity cost of 10%. Calculate: NPV, IRR, MIRR, Profitability Index
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Unformatted text preview: Which of the two projects would you select? 2. Calculate the Payback and Discounted Payback in years for the following projects: Project 1 Project 2 Year Cash Flow Year Cash Flow-200,000-200,000 1 50,000 1 90,000 2 90,000 2 70,000 3 110,000 3 35,000 4 50,000 4 50,000 Use a discount rate of 9%....
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This note was uploaded on 04/04/2012 for the course BUSINESS 105 taught by Professor Luann during the Spring '08 term at uot.

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