What are irr of each project

Reference no: EM13263956

ABC Inc. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable.
WACC: 10.25%
Year 0 1 2 3 4
CFS -$2,050 $750 $760 $770 $780
CFL -$4,300 $1,500 $1,518 $1,536 $1,554
Find the NPV of each project
What are IRR of each project?
Which project do you choose? Why? Explain fully.

Reference no: EM13263956

Questions Cloud

How many hours will it take to complete grading operation : A motor grader requires two passes at 2 miles per hour, two passes at 3 miles per hour, and one pass at 4 miles per hour to accomplish the work; job efficiency is 0.80. How many hours will it take to complete the grading operation for the 2-mile p..

Find the total charge stored in the system : Suppose you have a 9.00 V battery, a 2.2uF capacitor, and a 9.05uF capacitor. Find the total charge stored in the system if the capacitors are connected to the battery in series in C

Determine the actual and doping carrier concentrations : A gallium-arsenide crystal at 200K containing only donor impurities was found to have hole concentration to be one fifth that of the electron concentration. Determine the actual carrier concentrations and the doping concentration of the crystal.

How much are estimated monthly variable costs : How much are estimated monthly variable costs using the high-low method?

What are irr of each project : ABC Inc. is considering Projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable.

Calculate carrier concentrations and type of semiconductor : Calculate the carrier concentrations and the type of semiconductor if a pure silicon crystal at 300K is doped with 2.5×10^13 cm-3 boron atoms.

What is the firm pretax cost of debt : Titans, Inc. has 6 percent bonds outstanding that mature in 14 years. The bonds pay interest semiannually and have a face value of $1,000. Currently, the bonds are selling for $993 each. What is the firm's pretax cost of debt?

What is icu pretax cost of debt : ICU Window, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with nine years to maturity that is quoted at 115 percent of face value. The issue makes semiannual payments and has an embedded cost of 10.2 percent ..

What is the companys cost of equity capital : Halestorm Corporation's common stock has a beta of 1.23. Assume the risk-free rate is 4.8 percent and the expected return on the market is 12.3 percent.

User Account

All Pages