1. Hardchoice Corp. is a firm considering prospective capital budgeting projects. Selected data on the projects follow: Image attached Consider the following statements. Select the one that is true. 1.   The NPV of project D will be much more sensitive to changes in the discount rate than will the NPV of project A. 2. If projects C and D are mutually exclusive, incremental analysis indicates that one should reject project C and accept project D. 3. It is possible for projects A and D to have the same NPV. 4. All of the above are true. 5.  None of the above is true. Pls show formula used. Final dollar answers should be rounded to two decimal places. Interest rate answers should be rounded to 6 decimal places if expressed as a decimal or 4 decimal places if expressed as a percent. Use timeline if necessary. No excel .Thanks

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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1. Hardchoice Corp. is a firm considering prospective capital budgeting projects. Selected data on the projects follow: Image attached

Consider the following statements. Select the one that is true.

1.   The NPV of project D will be much more sensitive to changes in the discount rate than will the NPV of project A.

2. If projects C and D are mutually exclusive, incremental analysis indicates that one should reject project C and accept project D.

3. It is possible for projects A and D to have the same NPV.

4. All of the above are true.

5.  None of the above is true.

Pls show formula used.

Final dollar answers should be rounded to two decimal places. Interest rate answers should be rounded to 6 decimal places if expressed as a decimal or 4 decimal places if expressed as a percent.

Use timeline if necessary. No excel .Thanks!

Project
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
A
-400
100
110
120
130
140
В-А
C
-200
100
100
100
100
100
D
-400
140
130
120
110
100
Transcribed Image Text:Project Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 A -400 100 110 120 130 140 В-А C -200 100 100 100 100 100 D -400 140 130 120 110 100
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