Cullumber Corp. management is evaluating two independent projects. The costs and expected cash flows are given in the following table. The cost of capital is 9.75 percent. Year 0 1 2 3 4 5 A - $339,547 129,300 129,300 129,300 129,300 129,300 B -$411,808 The NPV of project A is $ The IRR of Project A is 168,190 142,830 179,500 128,800 a. Calculate the projects' NPV. (Enter negative amounts using negative sign e.g. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to O decimal places, e.g. 1,525.) 119,800 and project B is $ b. Calculate the projects' IRR. (Round answer to 2 decimal places, e.g. 15.25%.) % and Project B is %.

Cullumber Corp. management is evaluating two independent projects. The costs and expected cash flows are given in the following table. The cost of capital is 9.75 percent. Year 0 1 2 3 4 5 A - $339,547 129,300 129,300 129,300 129,300 129,300 B -$411,808 The NPV of project A is $ The IRR of Project A is 168,190 142,830 179,500 128,800 a. Calculate the projects' NPV. (Enter negative amounts using negative sign e.g. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to O decimal places, e.g. 1,525.) 119,800 and project B is $ b. Calculate the projects' IRR. (Round answer to 2 decimal places, e.g. 15.25%.) % and Project B is %.

Name: Cullumber Corp. management is evaluating two independent projects. Th
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Description: Cullumber Corp. management is evaluating two independent projects. The costs and expected cash flows are given in the followingtable. The cost of capital is 9.75 percent.Year012345A- $339,547129,300129,300129,300129,300129,300B- $411,808The NPV of p

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 8P: Edelman Engineering is considering including two pieces of equipment, a truck and an overhead pulley...

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Edelman Engineering is considering including two pieces of equipment, a truck and an overhead pulley system, in this year’s capital budget. The projects are independent. The cash outlay for the truck is $17,100, and that for the pulley system is $22,430. The firm’s cost of capital is 14%. After-tax cash flows, including depreciation, are as follows: Calculate the IRR, the NPV, and the MIRR for each project, and indicate the correct accept/reject decision for each.
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