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# 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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