Period CF Cumul. CF PVIF@11.0% DCF CDCF
0 (65,125.00)$ (65,125.00)$ 1.0000 (65,125.0000)$ (65,125.00)$
1 13,000.00$ (52,125.00)$ 0.9009 11,711.7117$ (53,413.29)$
2 13,000.00$ (39,125.00)$ 0.8116 10,551.0916$ (42,862.20)$
3 13,000.00$ (26,125.00)$ 0.7312 9,505.4880$ (33,356.71)$
Payback Period (question 1) 5.01
Discounted Payback (question 4) 7.69
NPV (question 2) 11,435.02$ or 11,435.02$
IRR (question 3) 15.05%
MIRR (question 5) 12.81%
Problem 7
Cost of Capital = 10%
Period Project A Project B
0 (15,000,000)$ (15,000,000)$
1 5,000,000$ 20,000,000$