Homework answers / question archive / 1)     For the calculations of a, b, c, e, f, g, h from the data below

1)     For the calculations of a, b, c, e, f, g, h from the data below

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1)     For the calculations of a, b, c, e, f, g, h from the data below.

2)     For the calculations of d, under the assumption that both projects are mutually exclusive, 

(Data)

Cash Flows for Franchises L and S. (Discount rate r or WACC is 10%)

 

L's CFs

S's CFs

0 year

-100

-100

1 year

20

80

2 year

50

40

3 year

80

20

a.     NPV_L , b. IRR_L , c. MIRR_L, d. Crossover rate or point e. PI_L , f. Payback_L , 

g. Discounted  Payback_L , h.EAA_L