A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation, are as follows:   0 1 2 3 4 5                             Project M -$12,000 $4,000 $4,000 $4,000 $4,000 $4,000 Project N -$36,000 $11,200 $11,200 $11,200 $11,200 $11,200   Calculate NPV for each project. Do not round intermediate calculations. Round your answers to the nearest cent. Project M:    $   Project N:    $   Calculate IRR for each project. Do not round intermediate calculations. Round your answers to two decimal places. Project M:      % Project N:      % Calculate MIRR for each project. Do not round intermediate calculations. Round your answers to two decimal places. Project M:      % Project N:      % Calculate payback for each project. Do not round intermediate calculations. Round your answers to two decimal places. Project M:     years Project N:     years Calculate discounted payback for each project. Do not round intermediate calculations. Round your answers to two decimal places. Project M:     years Project N:     years

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation, are as follows:

  0 1 2 3 4 5
             
             
Project M -$12,000 $4,000 $4,000 $4,000 $4,000 $4,000
Project N -$36,000 $11,200 $11,200 $11,200 $11,200 $11,200

 

  1. Calculate NPV for each project. Do not round intermediate calculations. Round your answers to the nearest cent.
    Project M:    $  
    Project N:    $  

    Calculate IRR for each project. Do not round intermediate calculations. Round your answers to two decimal places.
    Project M:      %
    Project N:      %

    Calculate MIRR for each project. Do not round intermediate calculations. Round your answers to two decimal places.
    Project M:      %
    Project N:      %

    Calculate payback for each project. Do not round intermediate calculations. Round your answers to two decimal places.
    Project M:     years
    Project N:     years

    Calculate discounted payback for each project. Do not round intermediate calculations. Round your answers to two decimal places.
    Project M:     years
    Project N:     years

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