You must analyze two projects, X and Y. Each project costs $10,000 and the firm's WACC is 14%. The expected cash flows are as follows: 1. 2 3 4 Project X Project Y -20000 -20000 11000 7000 6000 5000 8000 7500 7000 6500 (a.) (b.) (c.) (d.) Calculate each project X's NPV, MIRR, and discounted payback. Calculate each project Y's IRR and payback. Which project(s) should be accepted if they are independent? Which project(s) should be accepted if they are mutually exclusive?

You must analyze two projects, X and Y. Each project costs $10,000 and the firm's WACC is 14%. The expected cash flows are as follows: 1. 2 3 4 Project X Project Y -20000 -20000 11000 7000 6000 5000 8000 7500 7000 6500 (a.) (b.) (c.) (d.) Calculate each project X's NPV, MIRR, and discounted payback. Calculate each project Y's IRR and payback. Which project(s) should be accepted if they are independent? Which project(s) should be accepted if they are mutually exclusive?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 10P: Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year...

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