Finance Capital Budgeting

Table 1

Determine

 the

 following:

Mutually

mutually exclusive

Project Project

Simple

 Payback

 period NPV IRR MIRR Which

 projects

 should

 be

 accepted? 1245-­‐C,

 1248-­‐A,

 1257-­‐A

1245-A

CFo 1 2 3 4 5 6 7 8 9 10 ($770,000.00) $195,000.00 $225,000.00 $210,500.00 $216,500.00 $219,400.00 $219,400.00 $219,400.00 $214,400.00 $210,400.00 $210,400.00 Independent Project

1245-B

($740,000.00) $295,000.00 $315,000.00 $345,900.00 $200,000.00 $110,000.00 $80,000.00 $80,000.00 $80,000.00 $80,000.00 $80,000.00 Independent Project

1248-A

CFo 1 2 3 4 5 6 7 8 9 10 ($1,500,000.00) $458,900.00 $458,900.00 $458,900.00 $458,900.00 $458,900.00 $458,900.00 $458,900.00 $458,900.00 $458,900.00 $458,900.00

1257-A

($750,000.00) $261,900.00 $261,900.00 $261,900.00 $261,900.00 $261,900.00

1245-A

NPV NPV

 fn CFO NPV

  IRR MIRR PB $626,851.94 $1,396,851.94

($770,000.00)

1245-B

$494,308.02

$626,851.94 24.52% 15.24% 4.64

 years 2.38

 years 28.85% 14.28%

1248-A

NPV IRR MIRR $1,500,299.38 28.00% 16.37%

1247-B

$279,898.68 22.00% 15.69%

PB

3.27

 years

2.86

 years

Exclusive

WACC

Project

8.58%

1245-C

($2,800,000.00) $625,000.00 $550,000.00 $650,000.00 $750,000.00 $775,000.00 $800,000.00 $675,000.00 $650,000.00 $525,000.00 $500,000.00

1245-C

$1,476,783.37

19.39% 13.28% 4.29

 years