Project S has a cost of $10,000 and is expected to produce cash flows of $3,000

Question

Project S has a cost of $10,000 and is expected to produce cash flows of $3,000 per year for five years. Project L costs $25,000 and is expected to produce cash flows of $7,300 per year for five years. The company uses straight-line depreciation. Assume a 12% cost of capital.
a. Calculate the following:
Project S Project L
NPV _______________ _______________
IRR _______________ _______________
MIRR _______________ _______________
PI _______________ _______________
b. Assuming these projects are mutually exclusive, which one should be selected
c. Justify your selection.

* Please show me how to get the answers - show work so I understand how to get the answers. Thank you.

Explanation / Answer

Hi

Final values:

Calculations sheet with answers is uploaded in wikisend. Please find url below

Download link: http://wikisend.com/download/373132/Calculations1.xls

Forum Link:[URL=http://wikisend.com/download/373132/Calculations1.xls]Calculations1.xls[/URL]

Pasting the values below for reference from excel:

Project S Project L NPV 814.328607 1675.3439 IRR 15.24% 14.67% MIRR 13.77% 13.46% PI 1.081 1.067

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