knows that with your expertise, you will be able to provide a analysis using the different methods. He presented two prop that is Project Alpha and Project Omega. Every project cost of capital was proposed for each project. The following are cash flows for the project: Expected Net Cas Project Alpha (P10,000) Year 1 6,500 2 3,000 3,000 4 1,000 Required: 1. Calculote the following usina the information above:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Need answers fo C and D

Tortellini Company hired you as their Financial Analyst. The Cap Bud director
knows that with your expertise, you will be able to provide a comprehensive
analysis using the different methods. He presented two proposed capital projects
that is Project Alpha and Project Omega. Every project costs P10,000. A 12% cost
of capital was proposed for each project. The following are the projected net
cash flows for the project:
Expected Net Cash Flows
Project Alpha
(P10,000)
Project Omega
(P10,000)
3.500
3,500
Year
1
6,500
2
3,000
3
3,000
3,500
4
1,000
3,500
Required:
1. Calculate the following using the information above:
A. payback period
B. Net Present Value (NPV)
C. Internal Rate of Return (IRR)
D. Modified Internal Rate of Return (MIRR).
2. Which of the following projects, if independent, should be accepted?
3. Which of the following projects, mutually exclusive should be accepted?
Transcribed Image Text:Tortellini Company hired you as their Financial Analyst. The Cap Bud director knows that with your expertise, you will be able to provide a comprehensive analysis using the different methods. He presented two proposed capital projects that is Project Alpha and Project Omega. Every project costs P10,000. A 12% cost of capital was proposed for each project. The following are the projected net cash flows for the project: Expected Net Cash Flows Project Alpha (P10,000) Project Omega (P10,000) 3.500 3,500 Year 1 6,500 2 3,000 3 3,000 3,500 4 1,000 3,500 Required: 1. Calculate the following using the information above: A. payback period B. Net Present Value (NPV) C. Internal Rate of Return (IRR) D. Modified Internal Rate of Return (MIRR). 2. Which of the following projects, if independent, should be accepted? 3. Which of the following projects, mutually exclusive should be accepted?
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