Lemon Company is evaluating two mutually exclusive investment projects. The projects have the following cash flows: Year1,2,3,4, Project A Cash Flow: -$50,000, 10,000, 15,000, 40,000, 20,000 Project B Cash Flow: -$30,000, 6,000, 12,000, 18,000, 12,000
The company's WACC is 10 percent. Company's predetermined PPB =2.95 years, DPB =3.15 years, and ARR =25%
Please calculate the following values and make relevant comments
1. Payback Period
2. Discounted Payback Period
3. Accounting Rate of Return
4. NPV
5. IRR
6. MIRR
7. PI (Profitability Index)