Identified two mutually exclusive projects, Finance Basics

Assignment Help:

The director of capital budgeting for a firm has identified two mutually exclusive projects, A and B, with the following expected net cash flows:

Expected Net Cash Flows
Year Project A Project B
0 ($100) ($100)
1 70 10
2 50 60
3 20 80

Both of the projects have a cost of capital of 14 percent.

(i) What is the regular payback period (in years) for Project B?

Regular (non-discounted) Payback Period for B = ____________________.

(ii) What is Project A's net present value (NPV)?

NPV for A = ____________________.

(iii) What is the profitability index (PI) for Project B?

Profitability Index for B = ____________________.

(iv) What is the modified internal rate of return for Project A?

MIRR for Project A = ____________________.


Related Discussions:- Identified two mutually exclusive projects

Discounts and credit terms, Discounts and Credit Terms Credit Terms ...

Discounts and Credit Terms Credit Terms Credit terms involve both the length of the credit time and the discount specified.  The terms 2/10, n/30 means that a 2 percent d

Need financial econometric assignment help, I need help with financial econ...

I need help with financial econometric questions, i got stuck in finding answers for my homework, Can you provide engineering level financial econometric homework help? I need expe

Conservative approach - financing current assets, Conservative Approach - F...

Conservative Approach - Financing Current Assets An exact similar of asset life along with the life of the funds required to finance the asset may not be possible. A firm that

Source of finance for the sole proprietor, Source of Finance for the Sole P...

Source of Finance for the Sole Proprietor Some sources of capital---Discuss a) Savings b) Assistance from friends or relatives c) Proceeds from sale of assets d) Ba

Acd, Struggling with your final year projects, terms paper writing, researc...

Struggling with your final year projects, terms paper writing, research paper writing, thesis writing, engineering and programming projects? Experts are available 24x7 to help you

C.O.L.A., What are some good examples of C.O.L.A?

What are some good examples of C.O.L.A?

What are the types of financial assets, What are the types of financial ass...

What are the types of financial assets? Types of Financial Assets: a. Loans b. Bank Deposits c. Stocks A share of ownership within a company d. Bonds A promis

Monetary control operations, 'The most significant function of any Central ...

'The most significant function of any Central Bank is to undertake monetary control operations'.   Discuss with specific reference to the Bank of England, highlighting its current

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd