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 $875.58 $260 $10 $15 Project L -$1,000 $0 $250 $380 $843.71 The company's WACC is 10.0%. 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: Net present value is computes as present value of cash inflows less present value of cash outflows…

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A: Therefore, the net present value (NPV) is -$1.44.

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A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…

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A: Internal rate of Return refers to the rate at which the present value of the cash flow is equal to…

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A: NPV denotes the net present value of cash flows which states the present worth of the cash flows by…

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A: Internal Rate of Return: IRR makes the project's net present value equal to zero. Thus, the present…

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Q: A company is analyzing two mutually exclusive projects, S and L, with the following cash flows:   0…

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Q: What is the project's IRR? N

A: Computation of IRR in excel as follows: YearCashflows0-15401400240034004400=IRR(B2:B6)

Q: 17.    Consider the following two mutually exclusive projects: Year    Cash Flow (A)    Cash Flow…

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A: IRR is the rate at which NPV of the project is zero

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A: Project X : Initial cost = $1000 WACC = r = 10% Cash flow for years 1 = cf1 = $500 Cash flow for…

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Q: A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 1 3…

A: Year Project S Project L 0 -1000 -1000 1 871.53 0 2 260 260 3 10 400 4 10 766.36

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A: Here, WACC = 0.11 To Find: NPV of Project A =?

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A: We will compute the NPV of the two projects. The better project is the one with the higher NPV.

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A: IRR is also known as Internal rate of Return. It is a capital budgeting technique which helps in…

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Q: What is the projects MIRR

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Q: a. What is the project's IRR? Note th

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A: The IRR denotes as internal rate of return. The actual return receiving from investing in the…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.