CAPITAL BUDGETING TECHNIQUES The financial manager of EM Limited is required to analyse two proposed cap namely Projects N and O. Each has a cost of R100 000, and the cost of capita is 12%. Depreciation on each project is estimated at R25 000 per yea expected net profit (loss) are as follows:

time value of money practice example: Please show calcualtions/steps (excell or other format): a) Calculate PB, DPB, NPV, IRR and PI for the following project: - discount rate of 12% - initial investment = 750,000 - ncf yr 1 = 150,000 - ncf yr 2 = 300,000 - ncf yr 3 = 400,000 - ncf yr 4 = 250,000 - ncf yr 5 = 100,000

How do I compute the average rate of return of the five proposals? Rounding answers to one decimal place.

Quantitative Problem: Bellinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analysis. Both projects' after-tax cash flows are shown on the time line below. Depreciation, salvage values, net operating working capital requirements, and tax effects are all included in these cash flows. Both projects have 4-year lives, and they have risk characteristics similar to the firm's average project. Bellinger's WACC is 11%.     0 1 2 3 4                       Project A -1,050 600 360 300 290 Project B -1,050 200 295 450 740   What is Project A’s IRR? Do not round intermediate calculations. Round your answer to two decimal places. _________ % What is Project B's IRR? Do not round intermediate calculations. Round your answer to two decimal places.  _________% If the projects were independent, which project(s) would be accepted according to the IRR method?   If the projects were mutually exclusive, which…