7.6 Consider four investments with the following sequences of cash flows: Project A 0 -$18,000 1 2 3 Net Cash Flow Project B Project C -$30,000 $34,578 32,000 -18,000 32,000 -18,000 -18,000 30,000 20,000 10,000 -22,000 (a) Identify all the simple investments. (b) Identify all the nonsimple investments. (c) Compute i* for each investment. Project D -$56,500 2,500 6,459 -78,345

7.6 Consider four investments with the following sequences of cash flows: Project A 0 -$18,000 1 2 3 Net Cash Flow Project B Project C -$30,000 $34,578 32,000 -18,000 32,000 -18,000 -18,000 30,000 20,000 10,000 -22,000 (a) Identify all the simple investments. (b) Identify all the nonsimple investments. (c) Compute i* for each investment. Project D -$56,500 2,500 6,459 -78,345

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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7.3 q5-
Problem 7: NPV versus IRR. Consider the following two mutually exclusive projects: Year Cash flow Cash flow (X) (Y) O 1 2 3 -9500 5800 4000 4000 PART 7A: The NPV for X is $ Answer: 2083.77 -9500 3500 5000 6000 if the required rate of return is 10%.
1. Consider the below three investment projects generating cash flows as follows: Project 1 2 3 4 -500,000 -500,000 -500,000 А 1,000,000 -500,000 -500,000 -500,000 -500,000 B 550,000 750,000 -500,000 1,000,000 1,000,000 -500,000 Assume that the cost of capital is 10%. Use this cost of capital to discount (or inflate) all negative cash flows to the present time and all positive cash flows to period 1 in the below table. Then, calculate the IRR based on the cash flows of period 0 and 1. Project 1 IRR А B Using the above modified IRR, make investment decision for each project. Dose the modified IRR deliver correct decisions?
Solve it correctly please. I will rate accordingly. Solve by graphical method only.
2. You are evaluating an investment project with the following cash flows : Period Cash Flows - $200 000 1 $40 000 2 $60 000 3 $75 000 4 $ 80 000 Assuming the cost of capital 10%, calculate the following (in excel): Payback period Discounted Payback Period а. b. C. NPV d. PI е. IRR
QUESTION 3 If the cash flows for Project M are CO= -2,000; C1 = +400; C2 = +1,400; and C3= +1,300, calculate the IRR for the project. Please input the percentage format for your answer. And there is no need to put the percentage sign (%).
The following are the cash flows of two projects: Year 2234O 0 1 Project A $ (380) 210 210 210 210 Project B $ (380) 280 280 280 If the opportunity cost of capital is 11%, what is the profitability index for each project? Note: Do not round intermediate calculations. Round your answers to 4 decimal places. Project A B Answer is complete but not entirely correct. Profitability Index 1.7145 X 1.8006
Pls show proper steps correctly with explanation.
man.9
The cash flow streams for three alternative investment A, B, C andD are: Project Со Cash Flow (Tk.) C1 C2 C3 C4 C5 C6 A 230000 55000 45000 65000 45000 75000 50000 В 290000 45000 90000 35000 95000 65000 55000 310000 75000 55000 60000 55000 65000 45000 D 350000 77000 75000 95000 85000 65000 Determine (i) Pay Back Period, (ii) NPV if the required rate of return is 11%, and (ii) IRR for the four alternatives.
7. Dudley Corp. have identified a project with the following cash flows: Year 1 2 3 4 Cash Flow $ 940 1,090 1,340 1,405 If the discount rate is 8 percent, what is the future value of the cash flows in year 4? If the discount rate is 11 percent, what is the future value of the cash flows in year 4? If the discount rate is 24 percent, what is the future value of the cash flows in year 4? Do not round intermediate calculations and round your final answer to 2 decimal places.
Manshuk

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