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 cash flows of $7,400 per year for 5 years. Calculate the two projects' NPVs, assuming a cost of capital of 12%. Do not round intermediate calculations. Round your answers to the nearest cent. Project S: $ Project L: $ Which project would be selected, assuming they are mutually exclusive? Based on the NPV values, -Select-Project SProject LItem 3 would be selected. Calculate the two projects' IRRs. Do not round intermediate calculations. Round your answers to two decimal places. Project S: % Project L: %
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 cash flows of $7,400 per year for 5 years.
Calculate the two projects' NPVs, assuming a cost of capital of 12%. Do not round intermediate calculations. Round your answers to the nearest cent.
Project S: $
Project L: $
Which project would be selected, assuming they are mutually exclusive?
Based on the
Calculate the two projects' IRRs. Do not round intermediate calculations. Round your answers to two decimal places.
Project S: %
Project L: %
Which project would be selected, assuming they are mutually exclusive?
Based on the
Calculate the two projects' MIRRs, assuming a cost of capital of 12%. Do not round intermediate calculations. Round your answers to two decimal places.
Project S: %
Project L: %
Which project would be selected, assuming they are mutually exclusive?
Based on the MIRR values, -Select-Project SProject LItem 9 would be selected.
Calculate the two projects' PIs, assuming a cost of capital of 12%. Do not round intermediate calculations. Round your answers to three decimal places.
Project S:
Project L:
Which project would be selected, assuming they are mutually exclusive?
Based on the PI values, -Select-Project SProject LItem 12 would be selected.
Which project should actually be selected?
-Select-Project SProject LItem 13 should actually be selected.
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