A firm with a 14 wacc is evaluating two projects for this

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A firm with a 14% WACC is evaluating two projects for this year's capital budget. After tax cash flows, including depreciation are as follows;

Project A: -$600, $2000, $2000, $2000, $2000, $2000

Project B: -$18000,$5600, $5600,$5600, $5600,$5600

A. Calculate NPV,IRR,MIRR and discounted payback for ea. projcet.

B. Assuming the projcets are independent which one would you recommend?

C. If the projcets are mutually exclusive, which would you recomment?

D. Notice that the projects have the same cash flow timing pattern. Why is there a conflict between NPV and IRR?

Reference no: EM13617296

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