26. Garvin Enterprises is considering a project that has the following cash flow and WACC data. What is the project'sdiscounted payback? WACC = 10%.YearCash Flow0123a. 2.12 yearsb.2.35 yearsc. 2.59 yearsd. 2.85 yearse. 3.13 years27. Camel Rides is considering a project that has the following cash flow and WACC data. What is the project'sdiscounted payback? WACC= 10%.Year Cash Flowa. 1.72 yearsb. 1.92 yearsc.2.13 yearsd.2.36 yearse. 2.60 years01-$1,000$500$500$500234-$1,000$525$485$445$405

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Answered: 26. Garvin Enterprises is considering a…

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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Porter Company is analyzing two potential Investments. Project X $ 97,090 Initial investment Net cash flow: Year 1 Year 2 Year 3 Year 4 Multiple Choice If the company is using the payback period method, and it requires a payback of three years or less, which project(s) should be selected? O 32,500 32,500 32,500 0 Both X and Y are acceptable projects. O Project Y. Project Y $ 77,000 Project Y because it has a lower Initial Investment. Project X 5,700 34,500 34,500 25,000 Neither X nor Y is an acceptable project.
F2 please help.....
:55 Alpha Company is considering a project with the following cash flows: • Year 0 = (14,800) • Year 16,100 . Year 2= 7,400 • Year 3 = 5,100 • Year 4 = 4,700 What is the payback period?
Pm.4
Consider the following two projects with cash flows in $: Project Year 0 Year 1 Year Year 3 Year 4 Discount Rate A - 100 40 50 60 n/a 0.15 B -73 30 30 30 30 0.15 For Project A, after two years, the project has been paid off for $90 out of $100. To find out the fraction of the third year, we take the $10 yet to be paid and divide it by $60, which is $10/$60 = 0.167. Therefore, the payback period for Project A is 2.167 years. Following the same logic, calculate the payback period for Project B.
Barry company is considering a project that has the following cash flow and WACC data. what is the projects NPV? Note that you should use the WACC as the discount rate
Yellow Day has a project with the following cash flows: Year 0 1 2 Cash Flows -$ 26, 200 10,150 17,100 9,240 -3,200 What is the MIRR for this project using the reinvestment approach? The interest rate is 7 percent. 4 Multiple Choice 10.24% 14.50% 8.54% 11.39% 13.29%
Barry Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR?WACC = 12.85% Year 0 1 2 3 4 5 CFs -$35,600 10,100 20,200 30,300 40,400 50,500 `
i need the answer quickly
Coffer Company is analyzing two potential investments. Project X Cost of machine Net cash flow: Year 1 Year 2 $ 85,470 Project Y $ 65,000 33,000 33,000 3,000 30,000 Year 3 Year 4 33,000 0 • 30,000 25,000 If the company is using the payback period méthod, and it requires a payback period of three years or less, which project(s) should be selected? Multiple Choice Project Y. Project X. Both X and Y are acceptable projects. Neither X nor Y is an acceptable project.
1. The Bolster Company is considering two mutually exclusive projects: Year Cash Flow A Cash Flow B -$100,000 31,250 31,250 -$100,000 1 2 3 31,250 31,250 31,250 4 5 200,000 The required rate of return on these projects is 12%.
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26. Garvin Enterprises is considering a project that has the following cash flow and WACC data. What is the project's discounted payback? WACC= 10%. Year Cash Flow 0 1 a. 2.12 years b. 2.35 years c. 2.59 years d. 2.85 years e. 3.13 years 2 3 -$1,000 $500 $500 $500