8:07Sales in quantity and value including total value.Production in quantities.Material usage in quantitiesMaterial purchases in quantity and value, including total value.(i)(ii)(iii)(iv)QUESTION TWOBakasha Limited has estimated the expected cash flows for two possible projectsProject Year35(500) 200(400) 1002003002002002100100100500All figures are in GH¢*000RequiredRank these projects in order of acceptability using:PaybackNet present value at 20% cost of capitalProfitability Index(а)(4 marks)(8 marks)(4marks)(i)(ii)(iii)Explain briefly two advantages and two disadvantages of the payback. (4 marks)(20 MARKS)(b)Scanned with CamScanner

Period Project A -Cash flows Project A -Cumulative Cash flows Project B -Cash flows Project B…

Bakasha Limited has estimated the expected Project Year 2 3 4 5 200 (500) 200 (400) 100 200 300 200 2 100 100 100 500 (a) (i) (ii) (iii) All figures are in GH¢°000 Required Rank these projects in order of acceptability using: Payback Net present value at 20% cost of capital Profitability Index (4 marks) (8 marks) (4marks)

Bakasha Limited has estimated the expected Project Year 2 3 4 5 200 (500) 200 (400) 100 200 300 200 2 100 100 100 500 (a) (i) (ii) (iii) All figures are in GH¢°000 Required Rank these projects in order of acceptability using: Payback Net present value at 20% cost of capital Profitability Index (4 marks) (8 marks) (4marks)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Consider the following two mutually exclusive projects: Year Cash Flow Cash Flow (X) (Y) 0 -$20,800 -$20,800 1 9,050 10,500 2 9,500 8,000 3 9,000 8,900 IRR Project X: 15.49% Project Y: 15.69% What is the crossover rate for these two projects? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Crossover rate ______%
Bruin, Incorporated has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -$ 41,300 1 19, 100 2 17,800 3 15, 200 4 8,400 -$ 41,300 6,300 14, 200 17,900 30,300 a-1. What is the IRR for each of these projects? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. a-2. If you apply the IRR decision rule, which project should the company accept? b-1. Assume the required return is 11 percent. What is the NPV for each of these projects? a-1. Project A Project B a-2. Project acceptance b-1. Project A Project B b-2. Project acceptance Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b-2. Which project will you choose if you apply the NPV decision rule? % %
Given the data in the following table, what is the IRR of Project B?
Emusk Inc. is evaluating two mutually exclusive projects. The required rate of return on these projects is 8%. Calculate the net present value for project A. (Round to 2 decimals) Year 0 1 2 3 4 5 Project A -15,000,000 2,000,000 3,000,000 5,000,000 5,000,000 6,000,000 Project B -15,000,000 6,000,000 6,000,000 6,000,000 1,000,000 1,000,000
27. Net Present Value (NPV) and Internal Rate of Return (IRR) calculation results for three separate projects appear below (the required rate of return is 8 %). NPV ($2,000) Project A Project B Project C $0 $4,500 IRR 7% 8% 9% nem moo nesto zi boheq asdysg sdT IS Which of the following statements is TRUE? 17. A) Project C is acceptable under NPV but is not acceptable under IRR B) Project A is not acceptable under NPV but is acceptable under IRR C) Project B is not acceptable for NPV but is acceptable for IRR D) Project C is acceptable for NPV and is acceptable for IRR bato eulsy inszeng ten ( muten to sien isme 1976512 21 700j0rqs tot bohaq absdysg s'll SS lly being (A
What is the MIRR of Project PayoffSoon at a WACC of 11.786%? What is the PI of Project PayoffSoon at a WACC of 11.888%?
Piercy, LLC, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$56,000 32,000 26,000 19,000 13,200 -$56,000 19,400 23,400 28,000 25,400 1 3. 4. a-1. What is the IRR for each of these projects? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a-2. If you apply the IRR decision rule, which project should the company accept? b-1. Assume the required return is 12 percent. What is the NPV for each of these projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g.., 32.16.) b-2. Which project will you choose of you apply the NPV decision rule? c-1. Over what range of discount rates would you choose Project A? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c-2. Over what range of discount rates would you choose Project B? (Do not round intermediate calculations and…
Judson's cost of capital is 12%, what is the project's NPV? Year Cash Flow in $ 0 ($1000) 1 400 2 400 3 600
Q.1 Cash flows for two mutually exclusive projects are shown below: Year CFM CFN 0 -200 -200 1 85 60 2 85 85 3 85 110 Both projects have a cost of capital of 10%. b (i). Calculate the discounted payback for CFm project
Bruin, Inc., has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$29,700 -$29,700 15,100 4,650 13,000 10,150 9,550 15,900 5,450 17,500 0123 + 4 a-1 What is the IRR for each of these projects? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Project A Project B a-2 Using the IRR decision rule, which project should the company accept? Project A O Project B % % 2 lo this decisi orrect
4. NPV versus IRR Bruin, Inc., has identified the following two mutually exclusive projects: Year 0 1 2 3 4 Cash Flow(A) -$ 40,000 19,100 17,800 15,200 8,400 Cash Flow(B) -$ 40,000 6,300 14,200 17,900 30,300 a. What is the IRR for each of these projects? (5%) Using the IRR decision rule, which project should the company accept? (5%) b. If the required return is 10 percent, what is the NPV for each of these projects? (5%) Which project will the company choose if it applies the NPV decision rule? (5%)
Compute the NPV statistic for Project U if the appropriate cost of capital is 10 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Project U Time: 0 1 2 3 4 5 Cash flow: –$1,000 $350 $1,480 –$520 $300 –$100