This is a two-part question. Scotch can expand a successful manufacturing line for an immediate investment of $91 million. The company anticipates that the project will generate a cash flow of $172 million in 10 years (and only in that one year). The company considers the required rate of return of the project to be 12.60% PART 1. Calculate the project's internal rate of return: % Notes on Formatting: Place your answer in PERCENTAGE form with two decimal places of accuracy. For example, if your answer is thirteen point seventy five percent, then place your answer as 13.75 and NOT as .1375. NOW GO ON TO THE SECOND PART! PART 2. Given your estimate of the IRR, should Scotch accept or reject the project? Type the word "accept" if you believe they should go ahead with the project or the word "reject" if you believe they should not go ahead with the project.

Help NPV Calculate the net present value (NPV) for a 10-year project with an initial investment of $20,000 and a cash inflow of $6,000 per year. Assume that the firm has an opportunity cost of 18%. Comment on the acceptability of the project. The project's net present value is $ (Round to the nearest cent.) Тext ia Librai Calculat Resource Enter your answer in the answer box and then click Check Answer. Check Answer c Study 1 part remaining Clear All 10:27 PM unication Tools > 4/19/202 Type here to search insert fo 144

Consider a project with an initial investment (today, t = 0) of $225,000. This project will generate cash flows of $68,750 per year for the next 6 years. The company will pay $50,000 to another for clean-up and disposal in Year 6. What is the Profitability Index (PI) of the project if shareholders demand 8.25% return? Answer in whole numbers, rounded to three decimal places.

NPV Calculate the net present value (NPV) for a 30-year project with an initial investment of $45,000 and a cash inflow of $8,000 per year. Assume that the firm has an opportunity cost of 18%. Comment on the acceptability of the project. The project's net present value is $ (Round to the nearest cent.) Text ia Librai Calculat Resource Enter your answer in the answer box and then click Check Answer, Check Answer ic Study es Clear All part remaining unication Tools 10:11 4/19/ P Type here to search insert f10

Find internal rate of return of a project with an initial cost of $43,000, expected net cash inflows of $9,550 per year for 8 years, and a cost of capital of 10.50%.Round your answer to two decimal places. For example, if your answer is $345.667 round as 345.67 and if your answer is .05718 or 5.718% round as 5.72. Group of answer choices 15.05% 14.60% 14.90% 16.24% 17.73%

Your company is considering a capital project that will require a net initial investment of $264,978. The project is expected to have a 7-year life and will generate an annual net cash inflow of $46,260. Using the present value tables, what is the internal rate of return? (Round answers to 0 decimal places, e.g. 25.) Click here to view the factor table. Internal Rate of Return eTextbook and Media

There are two projects under consideration by the Rainbow factory. Each of the projects will require an initial investment of $35,017 and is expected to generate the following cash flows:   First Year Second Year Third Year Total Alpha Project $32,000   $22,000     $4,500   $58,500 Beta Project 8,000   24,000     27,106   59,106 A. Calculate the internal rate of return on both projects. Use the IRR spreadsheet function to calculate internal rate of return. Alpha Project fill in the blank 1% Beta Project fill in the blank 2% B. Make a recommendation on which one to accept.     .

Your company is considering a capital project that will require a net initial investment of $244,978. The project is expected to have a 7- year life and will generate an annual net cash inflow of $40,860. Using the present value tables, what is the internal rate of return? (Round answers to O decimal places, e.g. 25.) Click here to view the factor table. Internal Rate of Return %

Can you show me how this is done?   Kepner Inc, is considering a capital investment project. that will provide annual cash flows of  $31,248, requires an initial investment  of $62,241, and the PV of cash flows is $106,796.   What is the profitability index of the project? Round your answer 2 decimal places Selected Answer:  76 Correct Answer:  1.72 ± 0.01

Connor Corporation is considering two projects (see below). For your analysis, assume these projects are mutually exclusive with a required rate of return of 10%.     Project 1 Project 2 Initial investment $(465,000) $(700,000) Cash inflow Year 1 $510,000 $850,000   Compute the following for each project:   NPV (net present value) PI (profitability index) IRR (internal rate of return)   Based on your analysis, answer the following questions :   Which is the best choice? Why? Which project should be selected and why? If the projects had the same IRR amounts but different NPV totals, then how would you know which project to select? Explain. What would happen if both projects had negative NPV totals? Which project would you choose? What do negative NPVs indicate? Explain. Should we also use the payback method to assist us in project selection? Why or why not? Explain.