Question

      5.   Find the NPV, IRR, MIRR and Payback for the following projects; use a WACC...

      5.   Find the NPV, IRR, MIRR and Payback for the following projects; use a WACC of 10%.

Year

Project A

Project B

0

-$130,000

-$130,000

1

$60,000

$35,000

2

$40,000

$40,000

3

$40,000

$45,000

4

$25,000

$70,000

                                                                                         

Project A

Project B

NPV

IRR

MIRR

Payback Period

              If projects A & B are mutually exclusive, which would you recommend be accepted? ___________________

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