Am. 102. A company is analyzing two mutually exclusive projects, S and L, with the following cash flows:01234Project SProject L-$1,000 $883.66-$1,000 $10$250$260$10$380$5$790.73The company's WACC is 8.0%. What is the IRR of the better project? (Hint: The better project may or may not be the one with the higher IRR.) Round your answer to two decimal places.%

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Answered: A company is analyzing two mutually…

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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A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 0 1 2 3 4 Project S - $1,000 $896.96 $240 $5 $5 Project L – $1,000 $10 $250 $400 $774.94 The company's WACC is 9.0 %. What is the IRR of the better project? (Hint: The better project may or may not be the one with the higher IRR.) Round your answer to two decimal places.
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A Company is considering two mutually exclusive projects whose expected net cash flows are in the table below. The company's WACC is 15%. What is the NPV for Project Y? What is the NPV for Project Z? What is the IRR for Project Y? What is the IRR for Project Z? Which Project, if any, should you choose? Time Project Y Project Z 0 $(420.00) $(950.00) | $(572.00) $270.00 2 $(189.00) $270.00 3 $(130.00) $270.00 4 $1,300.00 $ 270.00 5 $720.00 $270.00 6 $980.00 $270.00 7 $(225.00) $270.00 Please show in excel I think im getting the wrong values
A Company is considering two mutually exclusive projects whose expected net cash flows are in the table below. The company's WACC is 15%. What is the NPV for Project Y? What is the NPV for Project Z? What is the IRR for Project Y? What is the IRR for Project Z? Which Project, if any, should you choose? Time Project Y Project Z 0 S (420.00) S(950.00) 1 S(572.00) $270.00 2 S(189.00) S270.00 3 S(130.00) $270.00 4 $1,300.00 $270.00 5 $720.00 $270.00 6 $980.00 $270.00 7 $(225.00) $270.00 Pleaseshow in excel I think im getting the wrong values
Your division is considering a project with the following net cash flows (in millions): Period 0 1 2 3 Project -$25 $5 $10 $17 A What is the project's NPV assuming the WACC is 0.11? (Enter your answer in millions with 2 decimals. That is, .5 million dollars, or 500,000.00, would be entered as 0.50) (Do not use the dollar sign or commas in your answer). Your Answer:
Using the Image, Please answer parts B and C
Your division is considering a project with the following net cash flows (in millions): Period 0 1 2 3 ProjectA -$25 $5 $10 $17 What is the projects NPV assuming the WACC is 0.14?
Barry Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR? WACC = 11.85% Year 0 1 2 3 4 5 CFs -$52,300 8,290 16,580 24,870 33,160 41,450 A. 21.40% B. 22.76% C. 20.71% D. 28.00% E. 18.89%
Tuttle Enterprises is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that if a project's projected NPV is negative, it should be rejected. WACC: Year Cash flows a. $196.28 b. $395.09 c. $680.00 Od. $223.76 e. $473.68 14.00% 0 -$1,000 1 $420 2 $420 3 $420 4 $420
Consider the following projects: Cash Flows ($) Project D E CO00 C101 -11,700 23,400 -21,700 37,975 Assume that the projects are mutually exclusive and that the opportunity cost of capital is 12%. a. Calculate the profitability index for each project. b-1. Calculate the profitability-index using the incremental cash flows. b-2. Which project should you choose?

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