The director of capital budgeting for giant inc has

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The director of Capital Budgeting for Giant Inc. Has Identified two mutually exclusive projects, JUPITER and SATURN, with the following expected net cash flows in seven years.

Expected Cash Flows:

Year JUPITERSATURN

O 12,000 (12,000)

14,0002,500

2 3,5004,500

3 3,2005,500

4 3,0002,500

59,0003,500

69,8006,500

7 8,5008,000

Calculate the following for the two projects

a) Net Present Value

b) IRR

c) MIRR

d) PROFITABILITY

e) PAYBACK PERIOD

f) DISCOUNTED PAYBACK PERIOD

g) DEFINE AND DISTINGUISH THE differences between Mutually exclusive and independent project

h) The two project (Jupiter and Saturn) are mutually exclusive, between the two which project should be rejected or accepted, give reasons why?.

i) Show all your work.

Reference no: EM13479923

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