a. 12.36% ON thIs planned investment is most nearty b.i 10.36% c 10% d. 9.36%
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- 3. A. B. C. time Capital Budgeting Project S Project L D. 0 -1000 -1000 1 500 100 2 400 200 3 300 300 4 200 400 5 100 500 USE NPV METHOD, assuming the WACC is 10%. Which project will you invest? Use IRR method, which project will you invest? Assuming WACC is 10%, use MIRR, which project will you invest? Use payback period method, which project will you invest?Consider the following projects: Project Co C₁ Cash Flows ($) C2 C3 CA C5 A -1,300 1,300 0 0 0 0 B -2,600 1,300 1,300 4,300 1,300 1,300 C -3,250 1,300 1,100 0 1,300 1,300 a. If the opportunity cost of capital is 9%, which project(s) have a positive NPV? b. Calculate the payback period for each project. c. Which project(s) would a firm using the payback rule accept if the cutoff period is three years? Complete this question by entering your answers in the tabs below. Required A Required B Required C If the opportunity cost of capital is 9%, which project(s) have a positive NPV? Note: Do not round intermediate calculations. Positive NPV project(s) Projects B and C Required A Required BRaghubhai
- D-78 Which of the following equations can be used to find the internal rate of return (i) for a project that hun initial investment of P, net annual cash flows of A, and salvage value of S after n years? (a) 0 = -P + AP/A, i%,n) + SP/A, i%, n) | (b) (Р — А)P/А, 1%, п) — SPIF, 1%, n) (с) — А %3D — РАР, %, п) — S(AF, i1%, п — 1) (d) 0 = -PF/P, i%,n) + A(F/A, i%, n) + Stuing Discreto Compounding; i-8% Uniform Series Uniform Gradient Conton Ans Sinking Find Gradient Uniform Presont Morh Fector lO Find P Giyn A Capital Recovery Factor No Find A Gradient Present Worth Factor Series Factor To FidT Givet Factor To Find A Given G A/G To Fiad A To Find P Given G N. PIG 1 1.0800 0 9259 08573 0.7938 0.7350 0.6806 0 6302 0.5835 10000 2 CE00 0 9259 1.7833 1.0000 0 4808 0 3080 0/2219 01705 0 1363 0.1121 O 0940 10800 0 5608 0.3880 0.0000 0.0000 1.1664 0.8573 0.4808 3 1.2597 3 2464 2.5771 2.4450 0.9487 4. 1.3605 4.5061 5 3666 73369 8.9228 10 6366 12.4876 14. 4866 3.3121 3.9927 46229 52064 5.7466 6 2469 6.7101 0/3019 4.6501 7.3724 10.5233 1.4040 0 2505 0.2163 1.4693 1.8465 1.5869 2.2763 1.7138 01921 0.1740 0.1601 14.0242 2.6937 8. 1.8509 0.5403 0.5002 0.4632 17.8061 3.0985 6. 1.9990 21.8081 3.4910 10 2.1589 .0690 0.1490 25.9768 3.8713 Print Done DOx.Cash flows for 3 shopping center project is shown below, Apply quantitative techniques to forecast how long to pay back the original investment in each project - Accounting Rate of Return (ARR) and choose the best project. Year Handover Bristol Carlisle -4 -4 -5 2.5 1.5 2.5 2 0.5 2.5 0.5 0.5 0.5 1.5 3 Carlisle Average Value = Choose. : Carlisle ARR = Choose. The best project is Choose. Bristol Average Value = Choose. Handover Average Value = Choose. : Bristol ARR = Choose. Handover ARR= Choose...
- please give me answer dont give answer in image formatProject A has the following estimated cash flows and present values:Year Cash flow $ Discount factor@ 12% Present value $0 Cost (95 000) 1.0 (95 000) 1–5 Contributionper annum 50 000 3.605 180 250 1–5 Fixed costsper annum (25 000) 3.605 (90 125) 5 Residual value 20 000 0.567 11 340 The benefit of using sensitivity analysis in an investment appraisal would be:QUESTION 40 The potential losses are sorted in the following table. The absolute VaR is £8 Million. What is the relative expected shortfall from the mean? Sorted returns Returns (£ Million) -12 -10 -8 -6 -4 -3 -1.5 OA. 4.64 B.-11 C.-6.36 D.2.64
- You are considering the following two mutually exclusive investments: Project Year 0 Year 1 Year 2 A -$80 0 $120 B -$40 $28 $28 Is the IRR of Project B larger or smaller than the IRR of Project A?Problem 8-23 Profitability Index (LO3) Consider the following projects: Co C₁ -$ 2,450 +$ 2,350 -2,450 +1,790 Project A B a. Calculate the profitability index for A and B assuming a 23% opportunity cost of capital. Note: Do not round intermediate calculations. Round your answers to 4 decimal places. Project A B C₂ +$ 1,550 +1,798 Profitability index ооо b. According to the profitability index rule, which project(s) should you accept? Project A Project B Both ONeithercan u make the npv, using this format 1 2 3 4 5 Net income 5,175,140.21 5,448,761.67 5,709,496.33 7,789,606.88 6,251,091.31 PV 12%
