2 POTENTIAL CAPITAL PROJECTS HAVE THE FOLLOWING ESTIMATED CASHFLOWS PROJECT 1 PROJECT 2 YEAR

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answerhappygod
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2 POTENTIAL CAPITAL PROJECTS HAVE THE FOLLOWING ESTIMATED CASHFLOWS PROJECT 1 PROJECT 2 YEAR

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2 POTENTIAL CAPITAL PROJECTS HAVE THE FOLLOWING ESTIMATED
CASHFLOWS
PROJECT
1 PROJECT
2
YEAR CASHFLOW CASHFLOW
1 $95,000 $112,000
2 $150,000 $95,000
3 $10,000 $85,000
4 $12,000 $65,000
5 $45,000 $10,000
6 $148,000 $
19,000
BOTH PROJECTS HAVE A COST OF $275,000. THE COST OF CAPITAL IS
11.5%
A. Calculate the payback period for each
project. State if payback is acceptable for each project
and state why.
B. Calculate the NPV for each
project. State if NPV is acceptable for each project and
state why.
C. Calculate the IRR for each
project. State if IRR is acceptable for each project and
state why.
D. Calculate the PI for each
project. State if PI is acceptable for each project and
state why.
Please write it on keyboard.
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