Project S has a cost of 10000 and is expected to produce benefits cash flows of

Project s has a cost of 10000 and is expected to

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Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of$3,000 per year for 5 years. Project L costs $25,000 and is expected to produce cashflows of $7,400 per year for 5 years. Calculate the two projects’ NPVs, IRRs, MIRRs,and PIs, assuming a cost of capital of 12%. Which project would be selected,assuming they are mutually exclusive, using each ranking method? Which shouldactually be selected?(10-10). Capital Budgeting Methods 1
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2 3 4 5 3000 3000 3000 3000 2 3 4 5 7400 7400 7400 7400
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The financial staff of Cairn Communications has identified the following informationfor the first year of the roll-out of its new proposed service:Projected sales$18 millionDepreciationInterest expenseThe company faces a 40% tax rate. What is the project’s operating cash flow for theParticularAmount
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