Calculate the two projects npv-irr-mirr-pi


Question:

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' NPV's, IRR's, MIRRs and PIs, assuming a cost of capital of 12%. Which project would be selected, assuming they are mutually exclusive, using each ranking method? Which should be selected?

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Finance Basics: Calculate the two projects npv-irr-mirr-pi
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