Compute the two projects'' npvs, irrs, mirrs and pis


Question: Project S has a cost of dollar 10,000 and is expected to produce benefits [cash flows] of dollar 3000 per year for five years. Project L costs dollar 25,000 and is expected to produce cash flows of dollar 7,400 per year for five years. Compute the two projects' NPVs, IRRs, MIRRs, and PIs, assuming a cost of capital of 12 percent. Which project would be selected, assuming they are mutually exclusive, using each ranking method?

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Finance Basics: Compute the two projects'' npvs, irrs, mirrs and pis
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