(Answered) The sanders electric company is evaluating two projects

Accounting

The Sanders Electric Company is evaluating two projects for possible inclusion in the firm's capital budget. Project M will require a $37,000 investment while project 0's investment will be $46,000. After-tax cash inflows are estimated as follows for the two projects:

YEAR    PROJECT PI    PROJECT 0
   $12,000       $10.000
2   12,000         10,000
3               12,000   15,000
4               12,000         15,000
5               15,000

a. Determine the payback period for each project
b. Calculate the NPV and PI for each project based on a 10 percent cast of capital. Which, if either, of the projects is acceptable?
c. Determine the IRR and M1RR for Projects M and 0.

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