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Calculate the five different criteria for evaluating projects (regular payback, discounted payback, NPV, IRR, and MIRR) for...

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Finance

Calculate the five different criteria for evaluating projects(regular payback,
discounted payback, NPV, IRR, and MIRR) for the two projects listedbelow. The firm’s
WACC is 9.90%. If the projects are mutually exclusive and the firmhas sufficient budget
available, which project (if any) would you choose to proceed with,and why? (Hint: you
may want to create the full cash flow table for each project tofully show your work.)

periods01234
project Hay cash flows-45,00017,00016,00015,00025,000
project Bee cash flows-50,00011,00030,00015,00025,000

Answer & Explanation Solved by verified expert
4.2 Ratings (624 Votes)
Cash flows are as belowperiods01234project Hay cash flows4500017000160001500025000Cumulative    See Answer
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Transcribed Image Text

Calculate the five different criteria for evaluating projects(regular payback,discounted payback, NPV, IRR, and MIRR) for the two projects listedbelow. The firm’sWACC is 9.90%. If the projects are mutually exclusive and the firmhas sufficient budgetavailable, which project (if any) would you choose to proceed with,and why? (Hint: youmay want to create the full cash flow table for each project tofully show your work.)periods01234project Hay cash flows-45,00017,00016,00015,00025,000project Bee cash flows-50,00011,00030,00015,00025,000

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