9-17 Compute the (a) net present value, (b) internal Pate of return (IRR), (c) modified internal rate of return (MIRR), and (d) discounted payback period (DPB) for each of the following projects. The firm's required rate of return is 13 percent. Year Project AB Project LM Project UV $(90,000) $(100,000) $ (96,500) 1 39,000 01 (55,000) 39,000 100,000 3. 39,000 147,500 100,000 2

9-17 Compute the (a) net present value, (b) internal Pate of return (IRR), (c) modified internal rate of return (MIRR), and (d) discounted payback period (DPB) for each of the following projects. The firm's required rate of return is 13 percent. Year Project AB Project LM Project UV $(90,000) $(100,000) $ (96,500) 1 39,000 01 (55,000) 39,000 100,000 3. 39,000 147,500 100,000 2

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

Please compute the discounted payback period for each of the following projects.

9-17 Compute the (a) net present value, (b) internal rate
of return (IRR), (c) modified internal rate of return
(MIRR), and (d) discounted payback period (DPB) for
each of the following projects. The firm's required
rate of return is 13 percent.
Year Project AB Project LM
Project UV
*$ (90,000)
$(100,000)
$ (96,500)
1
39,000
(55,000)
2
39,000
100,000
3
39,000
147,500
100,000
Which project(s) should be purchased if they are in-
dependent? Which project(s) should be purchased if
they are mutually exclusive?

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