Unformatted text preview: what discount rate would the company be indifferent between two projects? Explain. 3. Consider the following two mutually exclusive projectsYear Cash flowA (in thousands of dollar) Cash flowB (in thousands of dollar)35035 1 25 17 2 70 11 3 70 17 4 430 11 Explain which investment you will choose and WHY if you require 15% return on your investment… 1. If you apply payback 2. If you apply discounted payback 3. If you apply NPV 4. If you apply IRR 5. If you apply profitability. 4. North South is evaluating a project with the following cash flowsYear Cash flowA (in thousands of dollar)12 1 5.8 2 6.5 3 6.2 4 5.1 54.3 The company uses 10% discount rate. Calculate MIRR using all three methods discussed in the book. Due Date: 27 Due Date: 27 th th November, 2011 (Sunday) November, 2011 (Sunday)...
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 Spring '14
 Net Present Value, $1632, $1941.7, $2106.5, Cash flowB

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