Basic Capital Budgeting Problems Homework

Investment required Present value of cash inflows - Net present value Life of the project. Internal rate of return 1 Required 1 $ (270,000) 336,140 $ 66,140 Project 6 years 18% Complete this question by entering your answers in the tabs below. Required 2 Compute the profitability index for each investment project. Note: Round your answers to 2 decimal places. Profitability Index 2 $ (450,000) 522,970 $ 72,970 Project Number 3 years 19% The net present values above have been computed using a 10% discount rate. Limited funds are available for investment, so the company can't accept all of the available projects. Required: 1. Compute the profitability index for each investment project. 2. Rank the four projects according to preference, in terms of net present value, profitability index, and internal rate of return. 3 $ (360,000) 433,400 $ 73,400 12 years. 14 $ (480,000) 567,270 $ 87,270 6 years 16%

Question content area top Part 1 ​(Related to Checkpoint​ 6.5)  ​(Present value of a growing​ perpetuity)  What is the present value of a perpetual stream of cash flows that pays ​$2,500 at the end of year one and the annual cash flows grow at a rate of 2​% per year​ indefinitely, if the appropriate discount rate is 13​%? What if the appropriate discount rate is 11​%?       Question content area bottom Part 1 a.  If the appropriate discount rate is 13​%, the present value of the growing perpetuity is ​ $enter your response here. ​ (Round to the nearest​ cent.) Part 2 b.  If the appropriate discount rate is 11​%, the present value of the growing perpetuity is ​ $enter your response here. ​ (Round to the nearest ​ cent.)

Task 2A business has two projects to invest in, as follows:Create a new spread sheet, calculate NPV for the following projects at discount rates of 3% and 7%, respectively, by creating a dynamic process. Project 1 Project 2Year    Cash inflows    Cash outflows     Cash inflows     Cash outflows0          0.00                70,000.00             0.00                  70,000.001          24,000.00       13,000.00              25,000.00         15,000.002          22,000.00        1,000.00               25,000.00           03          25,000.00        0                           20,000.00          04          25,000.00        0                          43,000.00           21,000.005          17,500.00        7,500.00               20,000.00           5,000.00 P1: NPV                                                   P2: NPVThen, a) by using a built-in/Excel function, calculate the NPV for each project with discount rates of 3% and 7%, respectively;b) By comparing the NPVs at the rate of…

A company has to select one of the following two projects: Project A 25,000 Project B 23,000 Cost Cash Inflows: Year 1 15.000 5,000 3,000 12.000 3,000 4,000 3,000 20,000 Year 2 Year 3 Year 4 1. Using the Internal Rate of Retum method suggest which is Preferable. 2. Show your Solution. 3. Defend your answer.

Consider the following: Year Cash Flow 0 -$8,000 1 $200 2 $400 3 ? 4 $500 5 $700 The required rate of return is 8%. Find the minimum amount you would have to receive as a cash flow in year 3 and still recommend the project. Answer to 2 decimals places. 8,349.32

Chrome updates, yo Homework nces Suppose you are offered a project with the following cash flows: Cash Flows $ 9,800 Year 0 1 2 3 4 -4,300 -3,300 IRR -2,500 -2,300 What is the IRR of this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If the appropriate discount rate is 10 percent, should you accept this project? O Reject O Accept c. In the appropriate discount rate is 20 percent, should you accept this project? Accept Saved < Prev 4 of 11 MacBook

Project X cash flows is given on the timeline below 0. 2. 3 4. Project X -$10,000 $6.500 $3,000 $3.000 $1.000 Calculate Project X NPV if WACC-9% Round your answer to the nearest hundredth, have at least two decimal digits and write it in the Answer field. Would you accept or reject the project (write in the textbox below the answer field)?

View Policies Current Attempt in Progress Nancy Jackson has $185,000 to invest. She wants to be able to withdraw $17,020 every year forever without using up any of her principal. What interest rate would her investment have to earn in order for her to be able to do so? (Round answer to 2 decimal places, e.g. 15.25.) Interest rate eTextbook and Media % Save for Later Using multiple attempts will impact your score. 20% score reduction after attempt 2 Search ما Attempts: 0 of 3 used Submit Answer

Question An amount of $14951 is deposited into a fund that earns a nominal annual rate of interest is 4.4% compounded quarterly. The fund will be used to make quarterly payments of $600 at the end of every 3 months for as long as possible. A smaller payment X is to be paid along the last regular payment to completely deplete the fund. Compute the amount of the payment X. Possible Answers A 168.12 B 165.23 с 123.45 Ꭰ 134.67 E 459.15

Please solve subpart A,B max 30-45 minutes thank u   AmN companies will get capital from several options where the total funds must be obtained of 1.1 billion rupiah. The following is currently available market information:1. Debt interest rate is 12% per year2. State Bonds with minimal risk (risk free) of 5%3. JCI has a market return of 8%4. The company tax applied is 25%5. The company's performance is good so it has a stock Beta of 1.12The available options relate to the source of AmN's company capital, namely from Debt (direct tobank) and Equity (through ordinary shares) with the following explanation:1. Fully capital obtained from debt2. Fully capital obtained from equity3. The DER policy applied is 1/3 (or DER = 0.3333) Based on the narrative above you are asked to:A. Calculate WACC from the three available optionsB. Decide on the best choice with the reasons.

ems with IRR Suppose you are offered a project with the following cash flows: Year Cash Flows 0 $ 8,900 1 -4,600 2 -3,300 3 -2,400 4 -1,700 a. What is the IRR of this offer? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) IRR % b. If the appropriate discount rate is 11 percent, should you accept this offer? O Reject Accept c. If the appropriate discount rate is 23 Sercent, should you accept this offer? 3 Percent, should you accept this offer? O Accept O Reject d-1. What is the NPV of the offer if the appropriate discount rate is 11 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d-2. What is the NPV of the offer if the appropriate discount rate is 23 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

QUESTION 6 Seaborn Co. has identified an investment project with the following cash flows. Year Cash Flow $950 1,050 1,320 1,200 1 2 3 4 If the discount rate is 10 percent, what is the present value of these cash flows? 3542.76 3578.84 3418.66 4470.00 3847.03 Click Save and Submit to save and submit. Click Save All Answers to save all answers. SEP 28 30 tv ♫ A

Consider the following two projects: Project Year 0 Year 1 Cash Flow Cash Flow A B - 100 -73 40 30 OA. 2.7 years OB. 2 years OC. 2.3 years D. 2.5 years Year 2 Cash Flow 50 30 The payback period for project A is closest to Year 3 Cash Flow 40 30 *** Year 4 Cash Flow N/A 30 Discount Rate 0.1 0.1

which has a better IRR Project 1 Year Cashflows Discount Rate  10% 0  $                 (750,000.00)     1  $                   250,000.00     2  $                   300,000.00     3  $                   350,000.00     4  $                   200,000.00     5  $                   100,000.00                             Project 2 Year Cashflows Discount Rate 10% 0  $             (1,000,000.00)     1  $                   200,000.00     2  $                   300,000.00     3  $                   400,000.00     4  $                   500,000.00     5  $                   700,000.00

Problem 6. Justine Global Info Tech records the following cash flows at the end of each year for a project. If the firm's discount rate is 11%, what is the PRESENT VALUE of the project? Year Cash Flow 1 P794,633.00 P542,149.00 P836,200.00 P716,080.00 P520,354.00 2 3 4 5

Annual cash inflows from two competing investment projects are given below: Investment A $ 4,000 5,000 6,000 7,000 $ 22,000 Year 1234 The discount rate is 10%. Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables. Required: Compute the present value of the cash inflows for each investment. Year 1 2 3 4 $ Investment B $ 7,000 6,000 5,000 4,000 $ 22,000 Present Value of Cash Flows Investment A 0 $ Investment B 0 M ...

QUESTION 6 A project has the following cash flows: Year 0 1 2 ων 3 Cash flows -$85 30 35 40 If the required return is 15%, what is the IRR of this project? 9% 10% 11% 12% 15% Click Save and Submit to save and submit. Click Save All Answers to save all answers.

11:52 Investment Appraisal (Year 2 Column 2... 35% 4. An investment has the following cash flows. What is the ARR? Year 0 -90,000 Year 1 45,000 10,000 Year 2 Year 3 30,000 30,000 Year 4 6% 7% 9% 5. Which of the following investments would you choose based on payback? Project 3 years 6 months 5 years 10 months A В ... Activity Chat Teams Assignments More

fast pls A. Cash flows it is typical for Jane to plan, monitor, and assess her financial position using cash flowsover a given period, typically a month. Jane has a savings account, and her bank loans money at 6%per year while it offers short-term investment rates of 5%. Jane’s cash flows during August were asfollows: 10 points Item Cash inflows Cash outflowsClothes ₱ 1,000Interest received ₱ 450Dining out 500Groceries 800Salary 4,500Auto payment 355Utilities 280Mortgage 1,200Gas 222 a. Determines Jane’ total cash inflows and outflows.b. Determine the net cash flow for the month of August.c. If there is a shortage, what are the few options open to Jane?d. If there is a surplus, what would be a prudent strategy for her to follow?

Question content area top Part 1 ​(IRR calculation​) Determine the IRR on the following​ projects:   a. An initial outlay of ​$13,000 resulting in a single free cash flow of ​$17,165 after 9 years b. An initial outlay of ​$13,000 resulting in a single free cash flow of ​$46,394 after 15 years c. An initial outlay of ​$13,000 resulting in a single free cash flow of $105,001after 25 years d. An initial outlay of ​$13,000 resulting in a single free cash flow of ​$13,653 after 4 years

How do you calculate the NPV and IRR   Project 1     Year Cashflows Discount Rate  10%     0  $                 (750,000.00)         1  $                   250,000.00         2  $                   300,000.00         3  $                   350,000.00         4  $                   200,000.00         5  $                   100,000.00                                             Project 2     Year Cashflows Discount Rate 10%     0  $             (1,000,000.00)         1  $                   200,000.00         2  $                   300,000.00         3  $                   400,000.00         4  $                   500,000.00         5  $                   700,000.00

Exercise (NPV) - 20 mins Project A, B and C have the following cash-flow projections: Year Project A (S) -10,000 3.000 0 1 2 3 3,000 3.000 3,000 Project B (S) -10,000 1,000 2,000 . 4,000 8,000 Project C (S) -14,000 8,000 8,000 -3,000 -5,000 * Calculate the Payback Period and Net Present Value (NPV) for each of the projects shown. Assume, i=10% Decide which is the best project. Justify! What is the advantages of IRR over NPV as a measure of profitability?

Problem 5-3 Calculating Discounted Payback An investment project has annual cash inflows of $3,500, $4,400, $5,600, and $4,800, for the next four years, respectively. The discount rate is 14 percent. a. What is the discounted payback period for these cash flows if the initial cost is $6,200? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the discounted payback period for these cash flows if the initial cost is $8,300? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the discounted payback period for these cash flows if the initial cost is $11,300? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Discounted payback period b. Discounted payback period c. Discounted payback period years years years

Homework Question 7 of 9 -/0.75 View Policies Current Attempt in Progress Cullumber's Soft Lemonade is starting to develop a new product for which the cash fixed costs are expected to be $100,000. The projected EBIT is $140,000, and the Accounting DOL is expected to be 2.5. What is the Cash Flow DOL? (Round answer to 2 decimal places, e.g. 15.25.) Cash Flow DOL eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answe