Project P costs $15,000 and is expected to produce benefits (cash flows) of $4,500 per year for five years. Project Q costs $37,500
June 7th, 2024
Project P costs $15,000 and is expected to produce benefits (cash flows) of $4,500 per year for five years. Project Q costs $37,500 and is expected to produce cash slows of $11,100 per year for five years. Calculate each projects (a) net present value (NPV) (b) internal rate of return (IRR), and (c) modified internal rate of return (MIRR). The firm’s required rate of return is 14 percent.