Question

Please solve C and E and show how it’s done

Project A $300 $387 $193 $100 $600 $600 $850 $180 Project B 405 $134 $134 $134 $134 $134 $134 $o a. What is each s NPV? Round your answer to the nearest cent. Do not Project B your answers to parts a-c, which project would be selected?

Answer 1

Ans c) It is given as follows for Project A

	0	1	2	3	4	5	6	7
Cashflow	-$300.00	-$387.00	-$193.00	-$100.00	$600.00	$600.00	$850.00	-180.00
Present Value	-$300.00	-$348.65	-$156.64	-$73.12	395.24	356.07	454.44	-86.70
NPV	$240.64
IRR	18.10%
MIRR	14.59%

Similarly for project B is given as below

	0	1	2	3	4	5	6	7
Cashflow	-$405.00	$134.00	$134.00	$134.00	$134.00	$134.00	$134.00	0.00
Present Value	-$405.00	$120.72	$108.76	$97.98	88.27	79.52	71.64	0.00
NPV	$161.89
IRR	23.97%
MIRR	16.46%

Ans e)

Discount Rate (%)	NPV Project A	NPV Project B
0	$890.00	$399.00
5	$540.09	$275.14
10	$283.34	$178.60
12	$200.41	$145.93
15	$92.96	$102.12
18.1	-$0.09	$62.48
23.97	-$137.13	$0.03