SQC CH 11

Compute the IRR static for Project E. The appropriate cost of capital is 7 percent. (Do not round Intermedlate calculatilons and round your final answer to 2 declmal places.) 5. $180 1. 2. Cash flow -%241,400 009$ IRR % Should the project be accepted or rejected? O accepted O rejected Mc < Prev Type here to search |五 0 DELL F2 F4 F5 F7 9- F10 F12 PrtSc # & 2 24 ) 3. 4. L. 8.

58/45467554/aHR0cHM6Ly9mMi5hcHAUZWRtZW50dWOuY29tL2xlYXJuZXItdWkvc2Vjb25kYXJ5L3VzZXItY... Unit Activity: Mathematical Models and Investments Each question is worth four points. Space used (includes formatting): 0/ 15000 15px A 3 G Part. Part B Which investment would earn the most money by retirement at age 65? 1. investing $5,000 in stocks at 6% return at age 25 2. investing $10,000 in bonds at 3% interest at age 35 3. Investing $10,000 in stocks at 8% return at age 45 Explain the reasoning behind your answer. BIUX² X₂ AA Part A Tiffany is 45 and has three children in elementary school and college. She has been contributing to Social Security for over 20 years. List and describe three ways in which Tiffany and her family could get benefits from Social Security. Make sure that the three situations are completely different. BIU X² X₂ .15px V Grap https Char G is inv + EEEEEE ✓ ☆ 田 10 of 11 V Apr 3 91. C X Save & Exit 5:16 08

14. Given the following sequential decision tree, determine which is the optimal investment, A or B. 4D 5300,000 (-$20,000) se0,000 Investment A (-570.000) ●S75.000 O 70 20 5000,000 (-517.000) $70,000 I 15 35 $105,000 (-వని రింి0) 65 $40,000 Investment U (-850,000) 355.000 15. Jay Seago is suing the manufacturer of his car for $3.5 million because of a defect that he believes caused him to have an accident. The accident kept him to TL amont oEC700000of 8/2 31/8

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Use attachment to answer question    q3- This question relates to the diagram, which shows the NPV profile for Projects X and Y. What is the Internal Rate of Return of Project X? Select one: a. 13% b. 9% c. 4% d. 10%

dOfice eBook A firm with a WACC of 10% is considering the following mutually exclusive projects: 1 2 3 4 5 Project 1 -$200 $80 $80 $80 $215 $215 Project 2 -$600 $200 $200 $135 $135 $135 Which project would you recommend? Select the correct answer. Oa. Project 2, since the NPV2 > NPV1. Ob. Both Projects 1 and 2, since both projects have NPV's > 0. Oc. Both Projects 1 and 2, since both projects have IRR's > 0. Od. Project 1, since the NPV1 > NPV2. Oe. Neither Project 1 nor 2, since each project's NPV < 0.

Use attachment to answer question    q2- This question relates to the diagram, which shows the NPV profile for Projects X and Y. At what cost of capital are we indifferent between Projects X and Y? Select one: a. 13% b. 4% c. 10% d. 9%

A firm with a WACC of 10% is considering the following mutually exclusive projects: 1 2 3 4 5 + + + + H Project 1 -$450 $65 $65 $65 $180 $180 Project 2 -$450 $300 $300 $145 $145 $145 Which project would you recommend? Select the correct answer. Oa. Project 2, since the NPV2 > NPV1. Ob. Neither Project 1 nor 2, since each project's NPV NPV2. Od. Both Projects 1 and 2, since both projects have NPV's > 0. Oe. Both Projects 1 and 2, since both projects have IRR's > 0.

note : please you dont use excel.

ch A project with an initial investment of $88000 and a profitability index of 1.239 also has an internal rate of return of 12%. The present value of net cash flows is O $71025. O $98560. O $88000. O $109032. Save for Later O Et V B 21 E 7 Attempts: 0 of 1 used Submit Answer F12

Compute the PI statistic for Project X and note whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 9 percent.    Time: 0 1 2 3 4 5   Cash flow: -76 -76  0  111  86 61   rev: 11_25_2016_QC_CS-70617   Multiple Choice   1.49, accept   66.35, accept   9.00, reject   37.21, accept

NPV and IRR Analysis Cummings Products Company is considering two mutually exclusive investments whose expected net cash flows are as follows: EXPECTED NET CASH FLOWS Year Project A Project B -$340 -$630 -528 210 -219 210 3 -150 210 1,100 210 820 210 990 210 -325 210 a. Construct NPV profiles for Projects A and B. Select the correct graph. A B VPVS) 1400 VPV(S) VPV(S) 1400 1400- 1200 1200- 1200- 1000 1000 1000 800 Project B 800- Project A 800 Project A 600 600- 600 400 400- Project A Project B 400 200 200 Project B 200 Cost of capiar5 20 -5 30 -5 5 +++ 10 20 25 30 -5 15 Cost of cntal% -200 Cost of capital %) 20 25 30 -200 -200 -400 -4001 -400I D VPVS) T

Check my wor Compute the NPV for Project X and accept or reject the project with the cash flows shown below if the appropriate cost of capital is 8 percent. Time: 1 4 Cash flow: -110 -110 170 145 120 Multiple Choice $103.10 $323.20 $111.35 $111.90 80 888 DII

Consider three mutually exclusive alternatives: Year Investment X Investment Y Do Nothing -$200 -$145 1 +$62.5 +$47.5 +$62.5 +$47.5 3 +$62.5 +$47.5 4 +$62.5 +$47.5 Which alternative should be selected: (clue: try I= 9%,11%,12%) (a) If the Minimum Attractive Rate of Return (MARR) equals 3%? (b) If MARR = 6%? %3D (c) If MARR = 10%? (d) If MARR = 14%? 2.

Consider projects Alpha and Beta: Project CO C1 C2 IRR Alpha -400,000 241,000 293,000 21 21 Beta -200,000 131,000 172,000 31 The opportunity cost of capital is 8%. Suppose you ca ndertake Alpha or Beta, but not both. Use the IRR to make the choice and explain why.

A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 Project 1 -$500 $40 Project 2 -$500 Which project would you recommend? $40 $200 $200 3 $40 $130 4 $240 $130 5 $240 $130 Select the correct answer. Oa. Project 2, since the NPV₂ > NPV1. Ob. Both Projects 1 and 2, since both projects have IRR's > 0. Oc. Project 1, since the NPV₁ > NPV2. Od. Neither Project 1 nor 2, since each project's NPV 0.

Use attachment to answer question    q4-  This question relates to the Quiz 6.3 diagram, which shows the NPV profile for Projects X and Y. For what range of costs of capital is the NPV of both projects negative? Select one: a. Greater than 9% b. Between 9% and 13% c. Less than 4% d. Greater than 13%

Compute the Pl statistic for Project Q if the appropriate cost of capital is 12 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Project Q Time: 1 4. Cash flow: -$11,300 $3,500 $4,330 $1,670 $2,300 PI Should the project be accepted or rejected? O rejected O accepted ... MacBook Air

enj ers en ers exc sen pers OO 1 maximum precision can be obtained. (Unless indicated otherwise, enter your answers rounded to the nearest whole dollar/input code: 0). Investment Option "North" This potential investment is a little more risky and longer term, so it has a minimum rate of return of 15.30%. This investment would require an initial outlay of cash to purchase a piece equipment for $171,500, and at the end of the 8-year life of this investment is expected to have a salvage value of $77,175. For each year of this investment, net annual cash inflows are expected to be $32,500. 1. How much is the present value of the purchase of equipment? 2. How much is the present value of the salvage value? 3. How much is the present value of the annual cash inflows? 4. How much is the Net Present Value? 5. What is the value of the Present Value Index? (round to the nearest thousandths LA $ tA $ $ tA $ tA

23 Compute the payback statistic for Project A if the appropriate cost of capital is 8 percent and the maximum allowable payback period Project A Time: Cash flow: 4. $360 2. 3. 1. Should the project be accepted or rejected? O accepted O rejected < Prev 40 of 40 Next pe here to search 近。 F4 F5 F7 F10 F11 F12 70