Tesar Chemicals is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. WACC: 7.50% Year 0 1 2 3 4 CFS $1,100 $550 $600 $100 $100 CFL - $ 2,700 $650 $725 $800 $1,400 Find NPV, MIRR and discounted payback period for Project S.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter11: Capital Budgeting And Risk
Section: Chapter Questions
Problem 24P
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Tesar Chemicals is considering Projects S and L, whose cash flows are shown below. These projects are mutually
exclusive, equally risky, and not repeatable. WACC: 7.50% Year 0 1 2 3 4 CFS $1,100 $550 $600 $100 $100 CFL - $
2,700 $650 $725 $800 $1,400 Find NPV, MIRR and discounted payback period for Project S.
Transcribed Image Text:Tesar Chemicals is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. WACC: 7.50% Year 0 1 2 3 4 CFS $1,100 $550 $600 $100 $100 CFL - $ 2,700 $650 $725 $800 $1,400 Find NPV, MIRR and discounted payback period for Project S.
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