Year 25 20 15 20 15 Project A Project The discount rate is 10% Aner the following questions (you HAVE TO WRITE your final calculations on the side of each question anser IN ADOTION you will need to submit your excel sheet immediately after you finish a. Calculate the NPV, BCR, and IRR for both projects. b. Write a paragraph with your conclusion in part (a), if both projects were independent and if they were mutually exclusive. 20 30 20 75 20

Year 25 20 15 20 15 Project A Project The discount rate is 10% Aner the following questions (you HAVE TO WRITE your final calculations on the side of each question anser IN ADOTION you will need to submit your excel sheet immediately after you finish a. Calculate the NPV, BCR, and IRR for both projects. b. Write a paragraph with your conclusion in part (a), if both projects were independent and if they were mutually exclusive. 20 30 20 75 20

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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Problem 5-3 Calculating Discounted Payback An investment project has annual cash inflows of $3,500, $4,400, $5,600, and $4,800, for the next four years, respectively. The discount rate is 14 percent. a. What is the discounted payback period for these cash flows if the initial cost is $6,200? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the discounted payback period for these cash flows if the initial cost is $8,300? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the discounted payback period for these cash flows if the initial cost is $11,300? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Discounted payback period b. Discounted payback period c. Discounted payback period years years years
2 ts 02:59:19 eBook Hint Print ferences Kara, Incorporated, imposes a payback cutoff of three years for its international investment projects. Year O 1 2 3 4 Cash Flow (A) -$ 65,000 25,500 33,000 23,500 10,500 Project A Project B What is the payback period for both projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Cash Flow (B) -$ 75,000 17,500 20,500 31,000 235,000 Project A O Project B years years Which project should the company accept?
Assignment: Chapter 12 Homework Time Remaining: 0:58:20 Questions Problem 12.08 (New Project Analysis) 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 0 eBook Assignment Score: 78.57% Save Submit Assignment for Grading Question 4 of 14 ► Check My Work You must evaluate the purchase of a proposed spectrometer for the R&D department. The purchase price of the spectrometer including modifications is $140,000, and the equipment will be fully depreciated at the time of purchase. The equipment would be sold after 3 years for $32,000. The equipment would require an $8,000 increase in net operating working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $43,000 per year in before-tax labor costs. The firm's marginal federal-plus-state tax rate is 25%. a. What is the initial investment outlay for the spectrometer after bonus depreciation is considered, that is, what is the Year 0 project cash flow? Enter your answer as a positive value.…
out of question A company is considering a project that requires an initial cost of $8,000. The project will great dea net cash inflows of $100 in year one, $700 in year two, $6,000 in year three, $11,000 inyear four and $1 in year five. What is the NPV using 4% as the discount rate? NOTE: Enter amounts rounded to two decimals (e.g., 78.76 or 40.00) Net Cash Inflow Year 0 2 3 4 5 $100 $700 $6,000 $11,000 $12,000 NPV Total S $ $
Novell, Inc., has the following mutually exclusive projects. Year Project A Project B 0 $27,000 $30,000 1 15,500 2 12,000 3 3,600 16,500 10,500 12,000 a-1. Calculate the payback period for each project. (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) Project A Project B 1.958 years 2.250 years a-2. If the company's payback period is two years, which, if either, of these projects should be chosen? Project A Project B
CENGAGE MINDTAP Week 6 Homework Your division is considering two projects with the following cash flows (in millions): 0 2 1 % Project A -$20 Project B -$13 a. What are the projects' NPVs assuming the WACC is 5%? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to two decimal places. Project A: $ million million Project B: $ What are the projects' NPVs assuming the WACC is 10%? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to two decimal places. Project A: $ million Project B: $ million What are the projects' NPVs assuming the WACC is 15%? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative values,…
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
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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.
Question 22 solution send me only text typing work you just won a lottery and are offered three options for the payment(s). Which one would you prefer, based on. the largest present value? The interest rate assumption is 4.5% A. A payment of $1,2000,000 to paid now. B. $150,000 per year for the next 10 years. C. $12,500 paid monthly for 10 years. Calculate and show your work on how you arrived at your decision to get full credit
Question 3 You are starting a new project.This project would last 4years. The following is the input information that you have collected: Buildinf cost(1.3% in the first year and 2.6% every year)....................................$12,000,000 Equipment cost (MACRS 5 years)........................................................................$8,000,000 Net operating working capital requirement(% of sales)...........................................10% First year sales(in units)............................................................................................20,000 Growth rate in units sold.............................................................................................0% Sales price per unit......................................................................................................$3,000 Variable cost per unit.....................................................................................................$2,100 Fixed…
Problem 4-25 Calculating Rates of Return You're trying to choose between two different investments, both of which have up-front costs of $64,000. Investment G returns $124,000 in seven years. Investment H returns $184,000 in 11 years. Calculate the rate of return for Investments G and H. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Investment G Investment H % %

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