2) You are given the cash flows of project Z below. The appropriate cost of...
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2) You are given the cash flows of project Z below. The appropriate cost of capital for the firm considering the project is 9%. Compute the NPV, IRR and MIRR of the project. Would you recommend selecting the project? Year Project Z - 400,000 300,000 300,000 - 50,000 3) A company has an 11% WACC and is considering two mutually exclusive investments with the following cash flows Project P 300,000 387,000 - 193,000 100,000 600,000 600,000 850,000 - 180,000 Year Project Q 405,000 134,000 134,000 134,000 134,000 134,000 134,000 4 Compute the NPV, IRR, and MIRR of each project. Which project would you select based on each criterion? Please provide a brief justification for your recommendation Suppose you had to advise your boss about which of these two projects the company should select, what would be your final assessment and advice? Explain. a) b)
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