Homework answers / question archive / Two projects have following projected cash flows:                             Years Project 0 1 2 3 4 5 6 A: -9500 6000 5500 -4500 4500     B: -16400 3500 4000 5000 -5050 30% probability of 6 000; 70% probability of 10 000 60% probability of 9 000; 40% probability of 6 000                 Find:               Use 7% WACC               Project's A discounted bayback period             Project's B discounted bayback period             Project's A NPV               Project's B NPV               Profitability index for project A             Profitability index for project A             IRR for A               IRR for B               Project's A Equivalent Annual Annuity             Project's B Equivalent Annual Annuity             Project's A MIRR

Two projects have following projected cash flows:                             Years Project 0 1 2 3 4 5 6 A: -9500 6000 5500 -4500 4500     B: -16400 3500 4000 5000 -5050 30% probability of 6 000; 70% probability of 10 000 60% probability of 9 000; 40% probability of 6 000                 Find:               Use 7% WACC               Project's A discounted bayback period             Project's B discounted bayback period             Project's A NPV               Project's B NPV               Profitability index for project A             Profitability index for project A             IRR for A               IRR for B               Project's A Equivalent Annual Annuity             Project's B Equivalent Annual Annuity             Project's A MIRR

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