10. Nautilus Company is going to make an investment of $700,000 in a machine and the following are the cash flows that two different products would bring in years one through four. The company's required rate of return is 12%. Option A Option B $245,000 $225,000 $195,000 $275,000 $295,000 $250,000 $245,000 $225,000 What is the NPV for Option A? What is the NPV for Option B? What is the IRR for Option A? What is the IRR for Option B? PLEASE NOTE #1: The dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). Round your IRR answers, in percentage format, to two decimal places (i.e. 12.34%). Given the above answers, which project should the company invest in. ? Project . PLEASE NOTE #2: Your answer is either "A" or "B" - capital letter, no quotes.
10. Nautilus Company is going to make an investment of $700,000 in a machine and the following are the cash flows that two different products would bring in years one through four. The company's required rate of return is 12%. Option A Option B $245,000 $225,000 $195,000 $275,000 $295,000 $250,000 $245,000 $225,000 What is the NPV for Option A? What is the NPV for Option B? What is the IRR for Option A? What is the IRR for Option B? PLEASE NOTE #1: The dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). Round your IRR answers, in percentage format, to two decimal places (i.e. 12.34%). Given the above answers, which project should the company invest in. ? Project . PLEASE NOTE #2: Your answer is either "A" or "B" - capital letter, no quotes.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
10. Nautilus Company is going to make an investment of $700,000 in a machine and the following are the
| Option A | Option B |
| $245,000 |
$225,000 |
|
$195,000 |
$275,000 |
|
$295,000 |
$250,000 |
|
$245,000 |
$225,000 |
- What is the NPV for Option A?
- What is the NPV for Option B?
- What is the IRR for Option A?
- What is the IRR for Option B?
PLEASE NOTE #1: The dollar amounts will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). Round your IRR answers, in percentage format, to two decimal places (i.e. 12.34%).
- Given the above answers, which project should the company invest in. ? Project .
PLEASE NOTE #2: Your answer is either "A" or "B" - capital letter, no quotes.
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