Project(20%) (Project analysis) Consider the following three mutually exclusive projects:Cash flow at yr 3500Cash flow at yr 0Cash flow at yr 12000-3000Cash flow at yr 21000100070002000100010000ABC-3000-50002000a. (5%) Determine the payback period for each of the projects.b. (5%) Calculate the NPV of each of the project if interest rate is 4% compounded yearly.c. (5%) Calculate the IRR for each of the projects.d. (5%) Calculate the profitability index for each of the projects.

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(20%) (Project analysis) Consider the following three mutually exclusive projects: Project Cash flow at yr 0 Cash flow at yr 1 Cash flow at yr 2 -3000 2000 1000 -3000 1000 7000 -5000 2000 1000 a. (5%) Determine the payback period for each of the projects. b. (5%) Calculate the NPV of each of the project if interest rate is 4% compounded yearly. c. (5%) Calculate the IRR for each of the projects. d. (5%) Calculate the profitability index for each of the projects. A B C Cash flow at yr 3 500 2000 10000

(20%) (Project analysis) Consider the following three mutually exclusive projects: Project Cash flow at yr 0 Cash flow at yr 1 Cash flow at yr 2 -3000 2000 1000 -3000 1000 7000 -5000 2000 1000 a. (5%) Determine the payback period for each of the projects. b. (5%) Calculate the NPV of each of the project if interest rate is 4% compounded yearly. c. (5%) Calculate the IRR for each of the projects. d. (5%) Calculate the profitability index for each of the projects. A B C Cash flow at yr 3 500 2000 10000

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 13P

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