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Year 0 Cash Flow = +$25,000 (assume only 1 change in signs in future cash flows) Project IRR = 4.5%  Market Rate = 6.0% Without knowing anything more, can this project be accepted without reviewing NPV?  In other words, can you use the short-cut of comparing IRR vs. the market rate?  Why or why not?  Explain

A project has the following cash flows: Year Cash Flow 0 $71,500 1 -51,000 28,800 2 a. What is the IRR for this project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the NPV of this project if the required return is 5 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.) c. What is the NPV of the project if the required return is O 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. What is the NPV of the project if the required return is 23 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.) a. Internal rate of return b. NPV C. NPV d. NPV %

A project has the following cash flows: Year Cash Flow 0 $ 37,000 1 -18,000 227,000 What is the IRR for this project? (Round the final answer to 2 decimal places.) IRR % What is the NPV of this project, if the required return is 11% ? ( Negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) NPV $ What is the NPV of the project if the required return is 0% ? ( Negative answer should be indicated by a minus sign. Omit $ sign in your response.) NPV $ What is the NPV of the project if the required return is 22 % ? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) NPV $

A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow 159,000 -$ 57,000 82,000 1 66,000 3 What is the project's IRR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return % If the required return is 15 percent, should the firm accept the project?

A company is considering a project that has the following cash flow with a WACC of 12.50%. What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected. Year 0 1 2 Cash flows -$850 $300 $320 $340 $360 3.

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

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Ingram Electric Products is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected. WACC: 7.00%            Year 0   1   2   3   Cash flows -$800 $350 $350 $350

Consider the following cash flows: Year  0  1  2  3  4  5  6  Cash Flow  -$9,000  $2,000  $3,600  $2,700  $2,100  $2,100  $1,600    C. IRR. Calculate the IRR for this project. The company’s required rate of return is 10%. Should it be accepted or rejected?    D. NPV. Using a 10% required rate of return, calculate the NPV for this project. Should it be accepted or rejected?    E. PI. Calculate the Profitability Index (PI) for this project. Should it be accepted or rejected?

A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow 0 -$ 152,000 1 64,000 2 75,000 3 59,000 a. What is the project's IRR? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. If the required return is 13 percent, should the firm accept the project? % a. Internal rate of return b. Project acceptance

A project has the following cash flows: 0 1 2 5 -$400 $208 -$X $220 $360 $415 This project requires two outflows at Years 0 and 2, but the remaining cash flows are positive. Its WACC is 10%, and its MIRR is 17.4%. What is the Year cash outflow? Enter your answer as a positive value. Do not round intermediate calculations. Round your answer to the nearest cent.

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2) Song's Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that if a project's projected NPV is negative, it should be rejected. (Answer jn excel format and show spreadsheet inputs)   WACC: 10.25% Year 0 1 2 3 4 5 Cash flows ($1,000) $200 $300 $400 $300 $500

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Anderson Systems is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that if a project's projected NPV is negative, it should be rejected. WACC: 11.00%       Year 0      1    2   3   Cash flows -$1,000 $500 $500 $500

Rockmont Recreation Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected. WACC 10% Year: 01234 Cash flows: -$900 $300 $320 $340 $360 A 14.01% B. 16.35% C. 13.33% D. 15.69%

Braun Industries is considering an investment project that has the following cash flows: Year 0 1 2 3 Project Cash Flows -$634 $374 $309 $327 The company's WACC is 13.3 percent. What is the project's payback, internal rate of return (IRR), and net present value (NPV)? Should this project be accepted? O 1.54 years; 31.31% ; $191.64; No O 1.84 years; 28.31% ; $161.64; Yes O 1.64 years; 30.31% ; $181.64; Yes O 1.74 years; 29.31% ; $171.64; Yes O 1.54 years; 31.31% ; $191.64; Yes

4. Fer Designs is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? The WACC is 9%. Cash flow from project -$1,000 $400 $100 $800 Year 0 123

A firm evaluates all of its projects by applying the IRR rule. Cash Flow Year 0 1 2 3 147,000 69,000 70,000 54,000 What is the project's IRR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return % If the required return is 16 percent, should the firm accept the project?

7. The NPV and payback period What information does the payback period provide? Suppose Omni Consumer Products's CFO is evaluating a project with the following cash inflows. She does not know the project's initial cost; however, she does know that the project's regular payback period is 2.5 years. Year Cash Flow Year 1 $375,000 Year 2 $500,000 Year 3 $400,000 Year 4 $425,000 If the project's weighted average cost of capital (WACC) is 9%, what is its NPV? O $239,865 O $299,831 O $344,806 O $269,848 Which of the following statements indicate a disadvantage of using the discounted payback period for capital budgeting decisions? Check all that аpply. O The discounted payback period is calculated using net income instead of cash flows. O The discounted payback period does not take the time value of money into account. O The discounted payback period does not take the project's entire life into account.

7. The NPV and payback period What information does the payback period provide? Suppose Praxis Corporation's CFO is evaluating a project with the following cash inflows. She does not know the project's initial cost; however, she does know that the project's regular payback period is 2.5 years. Year Year 1 Year 2 Year 3 Year 4 Cash Flow $350,000 $450,000 $475,000 $400,000 If the project's weighted average cost of capital (WACC) is 7%, what is its NPV? $300,440 $394,328 $413,105 $375,550 Which of the following statements indicate a disadvantage of using the discounted payback period for capital budgeting decisions? Check all that apply. The discounted payback period is calculated using net income instead of cash flows. The discounted payback period does not take the project's entire life into account. The discounted payback period does not take the time value of money into account.

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ed Your company has a project available with the following cash flows: Year Cash Flow 0 -$80,900 12345 21,600 25,200 31,000 26,100 20,000 If the required return is 15 percent, should the project be accepted based on the IRR?

A firm evaluates all of its projects by applying the IRR rule. Year Cash Flow 0 –$ 148,000 1 68,000 2 71,000 3 55,000 What is the project's IRR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) A. The Initial Rate on Return

16. Masulis Inc. is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC: 10.00% Year 1 2 3 4 Cash flows -$900 $525 $485 $445 $405 а. 2.17 уears b. 1.63 years с. 2.07 years d. 1.71 years е. 2.33 years