A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 4 5 Project 1 -$400 $60 $60 $60 $230 $230 Project 2 -$450 $350 $350 $115 $115 $115 Which project would you recommend? Select the correct answer. Oa. Both Projects 1 and 2, since both projects have IRR's > 0. Ob. Project 1, since the NPV1 > NPV2. Oc. Project 2, since the NPV2 > NPV1. Od. Neither Project 1 nor 2, since each project's NPV < 0. Oe. Both Projects 1 and 2, since both projects have NPV's > 0.

A firm with a WACC of 10% is considering the following mutually exclusive projects: 0 1 2 3 4 5 Project 1 -$300 $65 $65 $65 $210 $210 Project 2 -$400 $300 $300 $150 $150 $150 Which project would you recommend? Select the correct answer. a. Both Projects 1 and 2, since both projects have NPV's > 0. b. Project 1, since the NPV1 > NPV2. O c. Both Projects 1 and 2, since both projects have IRR's > 0. d. Project 2, since the NPV2 > NPV1. e. Neither Project 1 nor 2, since each project's NPV < 0.

A firm with a WACC of 10% is considering the following mutually exclusive projects: 1 2 3 5 + ㅓ Project 1 Project 2 -$300 $60 $60 $60 $175 $175 -$550 $250 $250 $150 $150 $150 Which project would you recommend? Select the correct answer. Oa. Both Projects 1 and 2, since both projects have NPV's > 0. Ob. Both Projects 1 and 2, since both projects have IRR's > 0. Oc. Project 2, since the NPV2 > NPV1. Od. Neither Project 1 nor 2, since each project's NPV NPV2.

A firm with a WACC of 10% is considering the following mutually exclusive projects:   0 1 2 3 4 5                             Project 1 -$450 $50 $50 $50 $200 $200 Project 2 -$550 $200 $200 $150 $150 $150 Which project would you recommend? Select the correct answer.   a. Both Projects 1 and 2, since both projects have IRR's > 0.     b. Neither Project 1 nor 2, since each project's NPV < 0.     c. Both Projects 1 and 2, since both projects have NPV's > 0.     d. Project 1, since the NPV1 > NPV2.     e. Project 2, since the NPV2 > NPV1.

A firm with a WACC of 10% is considering the following mutually exclusive projects:   0 1 2 3 4 5                             Project 1 -$350 $65 $65 $65 $210 $210 Project 2 -$400 $250 $250 $145 $145 $145 Which project would you recommend? Select the correct answer.   a. Neither Project 1 nor 2, since each project's NPV < 0.     b. Both Projects 1 and 2, since both projects have NPV's > 0.     c. Project 1, since the NPV1 > NPV2.     d. Both Projects 1 and 2, since both projects have IRR's > 0.     e. Project 2, since the NPV2 > NPV1.

Boca Incorporated and Davie Corporation are two mutually exclusive projects: A WACC O 20.62% O $5500 O 8.16% O 21.88% time 0 1 2 3 4 O 11% 8.25% (8500.00) 3600.00 2400.00 2850.00 5200.00 You are asked to provide an NPV profile for these two projects. At which rate will the NPVs for the two projects be equal? B (9500.00) 3900.00 2900.00 2900.00 5550.00

Use the information for the question(s) below. Project A - 10,000 Project B Time 0 - 10,000 Time 1 5,000 4,000 Time 2 4,000 3,000 Time 3 3,000 10,000 If WiseGuy Inc. uses IRR rule to choose projects, which of the projects (Project A or Project B) will rank highest? OA. Project A OB. Project B OC. Project A and Project B have the same ranking OD. Cannot calculate a payback period without a discount rate.

You are evaluating the following two mutually exclusive projects:           Project           Year 0             Year 1           Year 2             A               -$100                 $95             $140              B                 -$50                 $50             $120 Both have 15% cost of capital.  Using NPV profiles for Projects A and B, determine which project would be chosen under each of IRR rule and NPV rule. (Hint: Draw the NPV profiles.) Group of answer choices A under IRR rule, and B under NPV rule B under IRR rule, and A under NPV rule A under both IRR and NPV rules Cannot be determined. B under both IRR and NPV rules

The Weiland Computer Corporation is trying to choose between the following mutually exclusive design projects, P1 and P2:Year 0123 Cash flows (P1) -$53,000 27,000 27,000 27,000 Cash flow (P2) -$16,000 9,100 9,100 9,100a. If the discount rate is 10 percent and the company applies the profitability index (PI) decision rule, which project should the firm accept?b. If the firm applies the Net Present Value (NPV) decision rule, which project should it take?c. Are your answers in (a) and (b) different? Explain why?

Given a WACC of 14%, which of the following mutually exclusive projects should the firm select? A. Project B, because it has the higher NPV B. Project A, because it has the higher IRR C. Neither project D. Project B, because it is the safer project (its IRR is the furtherest below WACC)