Question

# Capital Budgeting Methods Project S has a cost of \$10,000 and is expected to produce benefits...

 Capital Budgeting Methods Project S has a cost of \$10,000 and is expected to produce benefits (cash flows) of \$3,000 per year for 5 years. Project L costs \$25,000 and is expected to produce cash flows of \$7,400 per year for 5 years. Calculate the two projects' NPVs, assuming a cost of capital of 12%. Do not round intermediate calculations. Round your answers to the nearest cent. Project S: \$   Project L: \$   Which project would be selected, assuming they are mutually exclusive? Based on the NPV values, -Select-Project SProject LItem 3 would be selected. Calculate the two projects' IRRs. Do not round intermediate calculations. Round your answers to two decimal places. Project S:   % Project L:   % Which project would be selected, assuming they are mutually exclusive? Based on the IRR values, -Select-Project SProject LItem 6 would be selected. Calculate the two projects' MIRRs, assuming a cost of capital of 12%. Do not round intermediate calculations. Round your answers to two decimal places. Project S:   % Project L:   % Which project would be selected, assuming they are mutually exclusive? Based on the MIRR values, -Select-Project SProject LItem 9 would be selected. Calculate the two projects' PIs, assuming a cost of capital of 12%. Do not round intermediate calculations. Round your answers to three decimal places. Project S: Project L: Which project would be selected, assuming they are mutually exclusive? Based on the PI values, -Select-Project SProject LItem 12 would be selected. Which project should actually be selected? -Select-Project SProject LItem 13 should actually be selected. #### Earn Coins

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