What's the discount payback period of the projects? (compile a spreadsheet) Calculate NPV, PI of a projects Calculate IRR of a projects Should the firm accept the project? a) b) c) d)
Q: a. Calculate the NPV of each project, using a cost of capital of 15%. b. Rank acceptable projects by…
A: Net Present Value: It is the current worth of the project's annual cash flows and the initial cost…
Q: c) d) Which project(s) would you select if you used the IRR methods. Why? If these were mutually…
A: Answer C: Project B should be selected as it has a higher IRR.
Q: Which of the following statements is correct? A. If the NPV of a project is greater than 0,…
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Q: nat is the project's payback period? (Round you
A: Annual cash inflow Net operating income 420000 + depreciation 578000 Annual cash flow 998000
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Q: nternal rate of return For the project shown in the following table, calculate the internal rate…
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A: Formulas:
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A: net present value is the tool used to decide that a project is worthy of financing net present value…
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A: Expected NPV (A)=750×0.1+1000×0.15+1250×0.2+1500×0.25+1750×0.3=75+150+250+375+525 Expected…
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A: Information Provided: Required rate = 11% Expand (CF) Purchase Equipment (CF) 0 (400,000)…
Q: Which of the following statements is correct regarding the payback method? Takes account of…
A: Payback period is a tool of capital budgeting used to evaluate projects and investments.
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Q: NPV (TL) A Project B Project 750 1000 1250 1500 1750 0.1 0.15 0.2 0.25 0.3 0.15 0.25 0.3 0.1 0.2
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Q: choosing the most desirable Project using Payback period а. b. Discounted payback c. Net Present…
A: The calculations and the steps can be seen below:
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Q: When does the project reach the payback point?
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Q: Which of the following statements is incorrect regarding project appraisal techniques? At IRR, the…
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Q: Which of the following statements is CORRECT? O a. The NPV profile graph for a normal project will…
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Q: Required: (Evaluate the projects using each of the following criteria, stating which project(s)…
A: Information Provided: Required rate = 15%Years = 4
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A: Profitability Index: It is a capital budgeting technique in which projects are ranked according to…
Q: (a) Calculate the payback period of each project. ( ) (b) Compute the net present value of the two…
A: Payback Period: It is the period in which the project returns its initial outlay/cost. The lower…
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A: The calculation for Option 1 using excel:
Q: a. For each alternative project compute the net present value. b. For each alternative project…
A: Net Present Value (NPV) is measure through which we evaluate the financial viability of any project.…
Q: (c) Internal Rate of Return (IRR);
A: (A) Pay back period Year Project A Cumulative Cash Flow A Project B 1 9700 9700 5200 2 8500…
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A: Payback period:- Payback period is the period in which an project breakeven with Initial Investment…
Q: Calculate the Internal Rate of Return for the project. b. If you were the financial manager, would…
A: The internal rate of return can be calculated as follows : Calculations for above :
Q: An NPV profile plots a project's NPV at various costs of capital, labeled "A" and "B" in the graph.…
A: IRR is the required rate of return for the project to have zero Net Present value. FROM GRAPH, WE…
Q: A firm is considering what has been estimated to be a positive NPV project (NPV > 0). What can you…
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- Start with the partial model in the file Ch10 P23 Build a Model.xlsx on the textbooks Web site. Gardial Fisheries is considering two mutually exclusive investments. The projects expected net cash flows are as follows: a. If each projects cost of capital is 12%, which project should be selected? If the cost of capital is 18%, what project is the proper choice? b. Construct NPV profiles for Projects A and B. c. What is each projects IRR? d. What is the crossover rate, and what is its significance? e. What is each projects MIRR at a cost of capital of 12%? At r = 18%? (Hint: Consider Period 7 as the end of Project Bs life.) f. What is the regular payback period for these two projects? g. At a cost of capital of 12%, what is the discounted payback period for these two projects? h. What is the profitability index for each project if the cost of capital is 12%?The cash flows associated with an investment project are as follows: Year Project Y 0 (40 000) 1 10000 2 10000 3 15000 4 20000 The required return is 5 percent. Reinvestment rate 6%. What’s the discount payback period of the projects? (compile a spreadsheet) Calculate NPV, PI, IRR , MIRR of a projects Should the firm accept the project?Project Y has following cash flows: C0 = -800, C1 = +6,000, and C2 = -6,000. Calculate the IRRs for the project: For what range of discount rates does the project have positive NPV (Plot a graph with NPV on the vertical axis and discount rate on the horizontal axis).
- You identify an investment project with the following cash flows. If the discount rate is 10%, what is the present value of these cash flows? Y1- $500 Y2- $550 Y3- $800 Y4- $450. Please type answer no write by hend.Consider an investment project with the cash flows given in the table below. Compute the IRR for this investment. Is the project acceptable at MARR = 10%? The IRR for this project is %. (Round to one decimal place.) n 0 1 2 3 Cash Flow -$35,000 15,000 14,520 13,990A project has the following cash flows set out below. What is the profitability index of this project if the relevant discount rate is 2 percent? Enter your final answer to two decimal places. Year Cash flow 0 -1,745 1 537 2 2,066 3 3,912
- You've estimated the following cash flows (in $) for a project: A B 1 Year Cash flow 2 0 -3,000 3 1 900 4 2 1,300 5 3 1,606 The required return is 8.5%. 1. What is the IRR for the project? 2. What is the NPV of the project? 3. What should you do? Check all that apply: Accept the project based on its IRR Accept the project based on its NPV Reject the project based on its IRR Reject the project based on its NPVConsider the following projects: Year 0 Year 1 Year 2 Year 3 Year 4 Discount Rate Cash Flow A -100 30 20 40 B -73 25 20 20 C -27 10 9 9 13= 60 14.50% 45 15.00% 11 14.00% a. Find the NPV of the projects, will you accept/reject them? b. What is the IRR of the projects, will you accept/reject? c. If the firm had $250 to invest today, what project(s) should it pursue? d. If the firm only had $100 to invest today, what project(s) should it pursue?Profitability index. Given the discount rate and the future cash flow of each project listed in the following table, . use the Pl to determine which projects the company should accept. What is the Pl of project A? i Data Table (Round to two decimal places.) (Click on the following icon o in order to copy its contents into a spreadsheet.) Cash Flow Project A -%241,900,000 $150,000 $350,000 Project B Year 0 $2,300,000 $1,150,000 $950 000 $750,000 $550,000 Year 1 Year 2 Year 3 $550,000 Year 4 $750,000 $950,000 4% Year 5 $350.000 Discount rate 18% Print Done
- Consider projects A and B with the following cash flows: Ce $32 57 $16 +$16 + 32 +$ 16 32 a-1. What is the NPV of each project if the discount rate is 12%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) 6-2. Which project has the higher NPV? b-1. What is the profitability Index of each project? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b-2. Which project has the higher profitablity index? c. Which project is most attractive to a firm that can ralse an unlimited amount of funds to pay for its investment projects? d. Which project is most attractive to a firm that is limited in the funds it can ralse? ok nt mces Project A Project B a-1. NPV of ench project if the discount rate is 12% a-2. Which project has the higher NPV? b-1. Profitability index of each projoct b-2. Which project has the higher protitability index? Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for…Consider cash flows for the following investment projects (MARR = 15 %). Suppose that projects are mutually exclusive. Which project would you select based on AE criterion? Project A -3000 Project B -3500 ProjectC 4000 1400 1100 1500 2. 1650 1000 1500 3. 1300 1000 1800 1800 4 750 1000Consider the investment project with net cash flows shown. There are 2 rates of return for the project. One is 43.47%. What is the other? Enter as a percentage without the percent sign. For instance, if your answer is 10.23%, enter as 10.23. n Net Cash Flow 0 -$8000 1 $10000 2 $30000 3 -$40000