Overview:In this assignment, you will use capital budgeting techniques to analyze projects and select the project to accept based on the outcome of your analysis.Instructions:After reviewing the Module 6 Learning Resources, and reflecting on everything you completed thus far in the course, complete the following:
- Main Capital Incorporated is considering two mutually exclusive projects. The company’s discount rate is 10% and its payback period is 3 years.
- Download the Module 6 Assignment 2: Applying Capital Budgeting Techniques.xlsx file (link located under the assignment title above).
- Calculate the following for each project:
- Payback Period
- Net present value (NPV)
- Internal rate of return (IRR)
- Determine whether Main Capital should accept or reject the projects under each technique. Explain why.
- Include your explanation as to why in your worksheet.
- Submit your Excel worksheet to this assignment area.