70.2K
Verified Solution
Link Copied!
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.
a). Calculate the two projects NPVs, IRRs, MIRRs, and PIs, assuming a cost of capital of 12%.
b). Which project would be selected, assuming they are mutually exclusive, using each ranking method? Which should actually be selected?
Please answer both a and b by providing Excel syntax; no hand-written answers, formulas must be clear
Answer & Explanation
Solved by verified expert
