For the following projects, compute NPV,IRR,MIRR,profitability index, and paybac
ID: 2699530 • Letter: F
Question
For the following projects, compute NPV,IRR,MIRR,profitability index, and payback. If these projects are mutually exclusive, which one(s) should be done? If they are independant, which one(s) should be undertaken?
A B C D
Year 0 -1000 -1500 -500 -2000
year 1 400 500 100 600
year 2 400 500 300 800
year 3 400 700 250 200
year 4 400 200 200 300
discount rate 10% 12% 15% 8%
Explanation / Answer
A....Net present value(NPV) is 267.95 .................Profitability index (PI) is 1.27......................................B....Net present value(NPV) is -29.62,,,,,Profitability index (PI) is 0.98.,,,,irr,, ...............C......Net present value(NPV) is 74.09,,,Profitability index (PI) is 1.15.,,,,irr=23.14%.......D......... Net present value(NPV) is -379.30..............Profitability index (PI) is 0.81.
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