Problem:
Project S has a cost of $10,000 and is expected to produce benefits (cash flow) 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' NPVs, IRRs, 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 actually be selected?