50%Normal textLato1222ament willQ1)What is the IRR of Project Cif the outlay is $225,000 and the after-tax cash inflowsfor years one through four are: $45,000, $70,000, $80,000, and $105,000?13.21%12.9011.0011.9013.53.Q2) What is the NPV of Project C?$4,274.961,138.333,891.332.884.342.638.33.Q3) The payback period of Project C. is3.29 years2.8 years40 years3.7 years2.9 years.4777aI4+BIUAلسلي7474210

Step by step calculation of each.the financial metrics for Project C:Internal Rate of Return…

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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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What is the project's MIRR? r = 10.00% 0 Year Cash flows O a. 22.51% O b. 11.75% O c. 17.21% O d. 14.81% O e. 15.65% -$875 1 $300 2 $320 3 $340 $360
ed Your company has a project available with the following cash flows: Year Cash Flow 0 -$80,900 12345 21,600 25,200 31,000 26,100 20,000 If the required return is 15 percent, should the project be accepted based on the IRR?
What is Project A’s modified internal rate of return (MIRR)? Use 5 decimal places for the factors 18.15% 12.15% 14.49% 7.40% 15.54%
1. A project has an initial cost of 40,000. The future cash flows are 5,500, 15,200, -3,600, and 32,000 for year 1 to 4 respectively. How many IRRs will this project have? a. 3 b. 1 c. 4 d. 0
Q1) What is the IRR of Project A if the outlay is $6,600 and the annual after-tax.cash inflows are $2000 for four years? 8.16% 9.16 10.26 12.17 10.12 Q2) What is the NPV of Project A? $635.49 345.05 -325.59 Q3 The payback period of Project A is 2.8 years 3.0 years 3.6 years 2.9 years. I
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3) Consider the following two projects: Net Cash Flow Each Period Initial Outlay 1 2 3 4 Project A $4,000,000 $2,003,000 $2,003,000 $2,003,000 $2,003,000 Project B $4,000,000 0 0 0 $11,000,000 Calculate the net present value of each of the above projects, assuming a 14 percent discount rate. What is the internal rate of return for each of the above projects? Compare and explain the conflicting rankings of the NPVs and IRRs obtained in parts a and b above. If 14 percent is the required rate of return, and these projects are independent, what decision should be made? If 14 percent is the required rate of return, and the projects are mutually exclusive, what decision should be made?
Question 10 What is the IRR of Project C if the outlay is $225,000 and the after-tax cash inflows for years one through four are: $45,000, $70,000, $80,000, and $105,000? O 13.21% O 12.90 11.00 11.80 O 13.53. Question 11 What is the NPV of Project C? O $4.274.96 1.138.33 O 3.891.33 O2,884.34 2.638.33. 1 pt 1 pts
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Mf2. Your firm is considering choosing either Project X or Project Y with the following cash flows: Year: 0. 1 2 3 4 Project X -$150,000 $75,000. $65,000 55,000 $45,000 Project Y -$180,000 $90,000. $70,000 $70,000 $50,000 Between a discount rate of ______ and ______ you can be sure your firm should prefer Project Y to Project X. a. 0%; 14.16% b. 0%; 10.25% c.14.16%; 24.26% d10.25; 22.63% e. 0%; 25%
The following are the cash flows of two projects: Project B Year Project A 0 $ (235) $ (235) 115 135 115 135 115 135 115 1234O 1 2 3 4 What are the internal rates of return on projects A and B? Note: Enter your answers as a percent rounded to 2 decimal places. Project A B IRR % %

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