Flower Engineering is considering two mutually exclusive investments. The projects expected net cash flows are as follows:
|
Expected Net Cash Flows |
| Time |
Project A |
Project B |
| 0 |
($375) |
($675) |
| 1 |
($300) |
$200 |
| 2 |
($200) |
$200 |
| 3 |
($100) |
$200 |
| 4 |
$600 |
$200 |
| 5 |
$600 |
$200 |
| 6 |
$926 |
$200 |
| 7 |
($200) |
$200 |
Part 1:
A) Net Present Value
B) NPV Profiles and Graph
Part 2:
C) IRR
D) MIRR
Part 3:
E) Payback
F) Profitability Index