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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. For investemnt rate use IRR rate | |||||||
| Project's B MIRR. For investemnt rate use IRR rate | |||||||
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