2. NET firm is trying to decide between five mutually exclusive one- year projects. Project 1 Project 2 Project 3 Project 4 Project 5 Return Probability of return occurring 16 20 -16 36 48 -8 16 24 -40 0 100 1.0 1.0 0.25 0.50 0.25 0.25 0.50 0.25 0.10 0.60 0.30 Remember to regularly save your work Sheet 8 of 10 Module Code: ACF15084 Please work out the likely outcome for each project and discuss whether you can make informed decision according to this.

2. NET firm is trying to decide between five mutually exclusive one- year projects. Project 1 Project 2 Project 3 Project 4 Project 5 Return Probability of return occurring 16 20 -16 36 48 -8 16 24 -40 0 100 1.0 1.0 0.25 0.50 0.25 0.25 0.50 0.25 0.10 0.60 0.30 Remember to regularly save your work Sheet 8 of 10 Module Code: ACF15084 Please work out the likely outcome for each project and discuss whether you can make informed decision according to this.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing 133 A B. C. D G 1. 3 Question 1: COMPARING TWO PROJECTS UNSING NET PRESENT VALUE (NPV) 4. 5 Project A 6 Required 7 Outflow 8 Inflow 9 Net Inflow 10 NPV Interest rate Year 0 Year 1 Year 2 Year 3 Year 5 Year 6 Total 15% (S700,000) $225,000 1,125,000.00 $425,000 ($700,000) $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $225,000 $54,234.90 11 12 13 Project B 14 Required 15 Outflow 16 Inflow 17 Net Inflow 18 NPV 15% (5400,000) $550,000 $150,000 (S400,000) $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 $110,000 (S31,262.94) 19 Based on the information above, identify which project (Project A or B) should be accepted? Explain why. By changing the figures in the excel template (above), assume the interest rate for Project A fell to 13%, and Cash Questions: outflow (The Initlal investment)…
3. Problem 11.03 (MIRR) eBook Problem Walk-Through Project L requires an initial outlay at t = 0 of $55,000, its expected cash inflows are $13,000 per year for 9 years, and its WACC is 9%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places. BE %
Question 22 In 2021, Dana decided to adopt Kaizen to reduce costs and wastage. Which reason for the 'Importance of Controlling' is fulfilled by selecting Kaizen ( Explain your answer ( Use the editor to format your answer O 118 minutes remaining MacBook Pro
QUESTION 3 Project Year 0 Year 1 Year 2 Year 3 A -$200 $100 $100 $100 B -$300 $175 $125 $125 Based on the payback rule, which of the following is false? With a payback cutoff of 1.5 years, both projects are unacceptable. You would be indifferent between the two projects. With a payback cutoff of three years, both projects are acceptable. With a payback cutoff of one year, neither project is acceptable. Since both projects pay back, the NPV of both must be positive.
Question No. r The following information is provided for five mutually exclusive alternatives that have 20-year useful lives. If the minimum attractive rate of return is 6%, which alternative should be selected using IROR Method? Alternatives B Cost 4,000 2,000 6,000 1,000 9,000 Uniform Annual Benefit 639 410 761 117 785 IROR 15% 20% 11% 10% 6% IROR (B-D) IROR (A-D) IROR (A-B) IROR (C-B) IROR (C-A) IROR (E-C) IROR (E-A) -5% 29% 18% 10% 9% 2% 14%
4Homework: Project Analysis As X 9 Question 2 - Homework: Projec X %3D heducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Flms.mheducation.com%252F... O * O Project Analysis Assignment i 1 Saved Help Save & Exit Submit Check my work A project currently generates sales of $18 million, variable costs equal 60% of sales, and fixed costs are $3.6 million. The firm's tax rate is 35%. Assume all sales and expenses are cash items. a. What are the effects on cash flow, if sales increase from $18 million to $19.8 million? (Input the amount as positive value. Enter your answer in dollars not in millions.) Cash flow increases by $ 47,000 b. What are the effects on cash flow, if variable costs increase to 70% of sales? (Input the amount as positive value. Enter your answer in dollars not in millions.) decreases | by s 2$ 117,000 Cash flow
MIRR eBook A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 12 years, and a cost of capital of 11%. What is the project's MIRR? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to two decimal places.
Project X cash flows is given on the timeline below 0. 2. 3 4. Project X -$10,000 $6.500 $3,000 $3.000 $1.000 Calculate Project X NPV if WACC-9% Round your answer to the nearest hundredth, have at least two decimal digits and write it in the Answer field. Would you accept or reject the project (write in the textbox below the answer field)?
1. Calculate the Annual rate of return. Solving for Rates - Excel FILE INSERT PAGE LAYOUT FORMULAS DATA REVEW VIEW Calibri 国 Paste BIU - -A-Alignment Number Conditional Format as Cell Cells Formatting Table Styles Clipboard Font. Styles A1 E. What annual rate of return is earned on a $5,000 investment when it grows to $10,750 in six years? (Do not round intermediate calculations and round your final answer to 2 decimal places Present value 5,000 Future value Number of periods Complete the following analysis. Do not hard code values in vour calculations. Annual rate of return s of 10 Next > here to search TPL
#3 HE Year Project A Project B 0 -$20,000 -$23,000 1 2 3 15,200 5,900 2,100 14,300 8.100 7,100 Suppose the company uses the NPV rule to rank these two projects. Which project should be chosen if the appropriate discount rate is 15 percent?
t: Modi X * CengageNOWv2 | On x * Cengage Learning m/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=. CD B Milestone Two Guideli x G module 5 problem set x A eBook Show Me How Impaired Goodwill and Amortization of Patent On April 1, a patent with an estimated useful economic life of 12 years was acquired for $43,200. In addition, on December 31, it was estimated that goodwill of $41,000 was impaired. a. Record the acquisition of patent. If an amount box does not require an entry, leave it blank. April 1 b. Journalize the adjusting entry on December 31 for the amortization of the patent rights. Do not round intermediate calculations. If an amount box does not require an entry, leave it blank. Dec. 31 C. Journalize the adjusting entry on December 31 for the impaired goodwill. If an amount box does not require an entry, leave it blank. Dec. 31 Next Previous 3:24 PM Check My Work 11/28/2021 56°F Mostly cloudy a O E - A 0 home delete prt sc %23
Cool Math Games... Vanilla Sauce Reci... F. Easiest Bread Pud.... gle Chrome updates, you'll need macOS 10.13 or later. This computer is using OS X 10.11. 5 Homework Year 0 1 2 3 Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation (BRC). Both projects require an annual return of 14 percent. Check my work mode: This shows what is correct or incorrect for the work Deepwater Fishing -$ 875,000 330,000 480,000 440,000 Deepwater Fishing Submarine Ride New Submarine Ride -$1,650,000 a-1. Compute the IRR for both projects. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g.. 32.16.) Deenwater Fishin 890,000 730,000 590,000 % % Seved a-2. Based on the IRR, which project should you choose? < Prev Creams 10 of 11 MacBook Pro

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