Calculate the NPV for both projects if the discount rate is 10%

Q: Projects A and B below are mutually exclusive alternatives. The cash flow diagrams ar given.…

A: Net present value is computes as present value of cash inflows less present value of cash outflows…

Q: POD has a project with the following cash flows. The discount rate for the project is 9.1 percent.…

A: Net Present Value (NPV) is a calculation used to assess the worthiness of an investment by comparing…

Q: please answer

A: a.1 Profitability index project I = 1.278Profitability index project II = 1.293 a.2Project II should…

Q: The following are the cash flows of two independent projects:   Year Project A Project B 0 $…

A: The Net present value (NPV) of the project can be calculated as follows: Project A: NPV = Present…

Q: PLEASE ANSWER ACCURETLY   Duo Corporation is evaluating a project with the following cash flows:…

A: Discounting approach21.56% Reinvestment approach13.30% Combination approach13.25%Explanation:In the…

Q: Vital Silence, Inc., has a project with the following cash flows: Year Cash Flow 0 1 2 3 -$28,900…

A: The annual rate of return is referred to as the percentage that is computed to see the annual growth…

Q: If the cash flows for project A are Co discount rate. Multiple Choice $1,941 C₁ = 590; C2 = 1,590;…

A: NPV is the most used method of capital budgeting based on the time value of money and can be found…

Q: Year Year 2 33,000 Year 3 33,000 Year 4 28,000 the company is using the payback period method, and…

A: Introduction:- Payback period method :  It is the time taken for the cash flow of incomes for a…

Q: Is there any reason to believe that the project with the lower payback period is the better project?

A: Payback Period: It is the period in which the cost of the project is recovered. Hence, the shortest…

Q: Consider the following two mutually exclusive projects: Year Cash Flow (X) Cash Flow (Y) 0 $20,000…

A: The objective of this question is to calculate the Internal Rate of Return (IRR) for two projects…

Q: You are considering the following two projects and can take only one. Your cost of capital is 10.6%.…

A: IRR  of a project is the discount rate which makes net present value of the project equals to zero.…

Q: 2 f

A: Payback period: It is the period required to collect the amount invested in a capital project.…

Q: O O D 9,550 9,550 9,550

A: Given required rate of return for both the project =11%  First we have to find out the total Present…

Q: You are choosing between two projects. The cash flows for the projects are given in the following…

A: NPV is a Capital budgeting techniques which help in decision making that the Project is viable or…

Q: Refer to two projects with the following cash flows: Year Project A -$100 40 40 40 40 Project B…

A: To Find: Profitability Index

Q: uppose you are offered a project with the following cash flows: ear Cash Flows 0 1 2 3 4 $8,800…

A: IRR is one method of capital budgeting based on the time value of money where net present value is…

Q: Consider the following two projects: cash flows     Project A      Project B c0…

A: Hi. As per the guidelines we are allowed to answer the first four parts of a sub-part question.…

Q: None

A: The above answer can be explained as under - Here, the IRR is being calculated using the excel…

Q: Consider two mutually exclusive projects with the following expected cash flows and a required rate…

A: The discounted payback period is used to measure the amount of time it takes the discounted cash…

Q: 3) Fast Machine, Inc. have a Project with the following cash flows. The company evaluates the…

A: IRR is Internal Rate of Return and is one of the main techniques of capital budgeting. It is a rate…

Q: Suppose an investor is appraising an investment under the following conditions: a. Pi 0.15 Forecast…

A: Since multiple questions are asked , we will answer 1st question for you as per prescribed…

Q: Projects A and B have cash flows of Year 0 1 2 A-$80 $50 $50 B-$100 $75 $75 What do IRR and NPV…

A: NPV is also known as Net Present Value.. It is a capital budgeting technique which helps in decision…

Q: None

A:

Q: Consider this project with an internal rate of return of 15.5%. The following are the Year Cash Flow…

A: Discount rate = 13%IRR = 15.50%Year 1 cash flow = $105Year 2 cash flow = -$65Year 3 cash flow =…

Q: The Michner Corporation is trying to choose between the following two mutually exclusive design…

A: The objective of the question is to calculate the profitability index and net present value (NPV)…

Q: Two projects, Y and Z, have the following cash flows:   Year Project Y Project Z 0 -500 -1700…

A: Payback(PB) Period shows time in which initial outlay for any proposal is completely recovered from…

Q: Consider the following two mutually exclusive projects: Year Cash Flow (X) Cash Flow (Y) -$ -$ 0…

A:

Q: 10. Consider the following two projects with cash flows in $: Year 0 Year 1 Year 2 Project Cash Flow…

A: Here,

Q: Consider the following two projects with cash flows in $: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5…

A: To find the profitability index (PI) for Project Alpha, we need to calculate the present value of…

Q: Use the table for questions 18 and 19 below. Consider the following two projects: Year 0 Year 1 Year…

A: Difference between the present value of cash inflows and present value of cash outflows generated…

Q: Use the table for the question(s) below. Consider the following two projects with cash flows in $:…

A: The incremental IRR analysis refers to the method of comparing two competing investments. It is…

Q: Given the cash flow of two projects, A and B: Cash Flow Year 0 Year 1 Year 2 Year 3 Year 4 Year 5…

A:

Q: onsider the two mutually exclusive projects described in the table below. the question requires a…

A: In this question , two mutually exclusive projects described in the table below, any positive values…

Q: Piercy, LLC, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash…

A: Calculation of IRR of both the projects and IRR of A-B: Excel workings:

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.