Capital budgeting criteria: A firm with a 14% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation, are as follows:
0 1 2 3 4 5
Project M -$6,000 $2,000 $2,000 $2,000 $2,000 $2,000
Project N -$18,000 $5,600 $5,600 $5,600 $5,600 $5,600
a. Calculate NPV for each project.
b. Calculate IRR for each project.
c. Calculate MIRR for each project.
d. Calculate payback for each project.
e. Calculate discounted payback for each project.
