A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation, are as follows: 2 4 5 Project M -$18,000 $6,000 $6,000 $6,000 $6,000...

I Need Help With Sections A-D.A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation, are as follows:<br>2<br>4<br>5<br>Project M<br>-$18,000 $6,000<br>$6,000 $6,000<br>$6,000<br>$6,000<br>Project N<br>-$54,000 $16,800 $16,800 $16,800 $16,800 $16,800<br>a. Calculate NPV for each project. Do not round intermediate calculations. Round your answers to the nearest cent.<br>Project M:<br>$<br>Project N:<br>Calculate IRR for each project. Do not round intermediate calculations. Round your answers to two decimal places.<br>Project M:<br>%<br>Project N:<br>%<br>Calculate MIRR for each project. Do not round intermediate calculations. Round your answers to two decimal places.<br>Project M:<br>%<br>Project N:<br>%<br>Calculate payback for each project. Do not round intermediate calculations. Round your answers to two decimal places.<br>Project M:<br>years<br>Project N:<br>years<br>Calculate discounted payback for each project. Do not round intermediate calculations. Round your answers to two decimal places.<br>Project M:<br>years<br>Project N:<br>years<br>b. Assuming the projects are independent, which one(s) would you recommend?<br>-Select-<br>c. If the projects are mutually exclusive, which would you recommend?<br>-Select-<br>d. Notice that the projects have the same cash flow timing pattern. Why is there a conflict between NPV and IRR?<br>-Select-<br>

Extracted text: A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation, are as follows: 2 4 5 Project M -$18,000 $6,000 $6,000 $6,000 $6,000 $6,000 Project N -$54,000 $16,800 $16,800 $16,800 $16,800 $16,800 a. Calculate NPV for each project. Do not round intermediate calculations. Round your answers to the nearest cent. Project M: $ Project N: Calculate IRR for each project. Do not round intermediate calculations. Round your answers to two decimal places. Project M: % Project N: % Calculate MIRR for each project. Do not round intermediate calculations. Round your answers to two decimal places. Project M: % Project N: % Calculate payback for each project. Do not round intermediate calculations. Round your answers to two decimal places. Project M: years Project N: years Calculate discounted payback for each project. Do not round intermediate calculations. Round your answers to two decimal places. Project M: years Project N: years b. Assuming the projects are independent, which one(s) would you recommend? -Select- c. If the projects are mutually exclusive, which would you recommend? -Select- d. Notice that the projects have the same cash flow timing pattern. Why is there a conflict between NPV and IRR? -Select-

Jun 05, 2022
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