CENGAGE MINDTAP

Ch 11-End-of-Chapter Problems - The Basics of Capital Budgeting

b. What is each project's IRK? Do not round intermediate calculations. Round your answers to two decimal places.

Project A:

Project B

c. What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Do not round intermediate calculations. Round your answers to two decimal places.

Project A

Project B:

d. from your answers to parts a-c, which project would be selected?

-Select-

Project was 18%, which project would be selected?

Project

e. Construct NPV profiles for Projects A and B. If an amount is zero, enter 0. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round

your answers to the nearest cent.

NPV Project A

Discount Rate

0%

5

10

12

15

18.1

23.01

Q Search this co

5

NPV Project