a. 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: %
Please answer the questions in the image and the ones below. Thank you!
1. Assuming the projects are independent, which one(s) would you recommend?
A. Both projects would be accepted since both of their NPV's are positive
B. Both projects would be rejected since both of their NPV's are negative
C. Only Project M would be accepted because
D. Only Project N would be accepted because NPV(N)>NPV(M)
E. Only Project M would be accepted because NPV(M)>NPV(N)
2. If the projects are mutually exclusive, which would you recommend?
A. If the projects are mutually exclusive, the project with the highest NPV is chosen. Accept Project N
B. If the projects are mutually exclusive, the project with the highest positive IRR is chosen. Accept Project M
C. If the projects are mutually exclusive, the project with the highest positive MIRR is chosen. Accept Project M
D. If the projects are mutually exclusive, the project with the shortest packback period is chosen. Accept project M.
E. If the projects are mutually exclusive, the project with the highest positive IRR is chosen. Accept Project N
3. Notice that the projects have the same cash flow timing pattern. Why is there a conflict between NPV and IRR?
A. The conflict between NPV and IRR occurs due to the fact that the cash flows are in the form of an
B. The conflict between NPV and IRR occurs due to the difference in the timing of the cash flows.
C. There is no conflict between NPV and IRR
D. The conflict between NPV and IRR occurs due to the difference in the size of the projects.
E. The conflict between NPV and IRR is due to the relatively high discount rate.
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