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The director of capital budgeting for Giants Inc. has identified two mutually exclusive projects. Calculate payback period, NPV, IRR and MIRR.

The director of capital budgeting for Giants Inc. has identified two mutually exclusive projects, L and S, with the following expected net cash flows:

Expected Net Cash Flows
Year Project L Project S
0 ($100) ($100)
1 10 70
2 60 50
3 80 20

Both projects have a cost of capital of 10%.

-What is the payback period for Project S?

-What is Project L's Net Present Value (NPV)?

-What is Project L's Internal Rate of Return (IRR)?

-What is Project L's Modified Internal Rate of Return (MIRR)?

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