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11.99
The Rebus Co. is trying to decide between the following two mutually exclusive projects:

Cash Flows
Year Project I Project II
0 -$18,000 -$12,000
1 $8,500 $6,500
2 $9,000 $6,000
3 $9,500 $7,000

The only requirement the company has is that any project that is accepted must produce a minimum rate of return of 11%.

Calculate payback period, discounted payback period, IRR and NPV, as well as any other measures which would be helpful.

Fill in the following table with your results:

Year Project I Project II
Payback (yrs.)
Discounted Payback (yrs.)
IRR
NPV

What should the company do and why?