Calculate the Payback period and discounted pay back period of these projects! Which project should the company accept? What are the differences of payback period and discounted payback period in investment decision making? Which one is more reliable? C. Hitunglah Payback period and discounted payback period dari kedua projek! Projek yang mana harus diterima? Apakah perbedaan dari payback period and discounted payback period pada pengambilan keputusan investasi? Yang mana yang lebih dapat dipercaya? d. At what discount rate would the company be indifferent between these two projects?
Calculate the Payback period and discounted pay back period of these projects! Which project should the company accept? What are the differences of payback period and discounted payback period in investment decision making? Which one is more reliable? C. Hitunglah Payback period and discounted payback period dari kedua projek! Projek yang mana harus diterima? Apakah perbedaan dari payback period and discounted payback period pada pengambilan keputusan investasi? Yang mana yang lebih dapat dipercaya? d. At what discount rate would the company be indifferent between these two projects?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
No 1 a,b,c,d
Transcribed Image Text:Calculate the Payback period and discounted pay back period of these projects! Which
project should the company accept? What are the differences of payback period and
C.
discounted payback period in investment decision making? Which one is more reliable?
Hitunglah Payback period and discounted payback period dari kedua projek! Projek yang
mana harus diterima? Apakah perbedaan dari payback period and discounted payback
period pada pengambilan keputusan investasi? Yang mana yang lebih dapat dipercaya?
d.
At what discount rate would the company be indifferent between these two projects?
Explain how you do the calculation!
Transcribed Image Text:NO 1. (40 points) CRAYON corporation has identified the following two mutually exclusive
projects:
Perusahaan CRAYON mengidentifikasikan dua projek (saling eksklusif) sebagai berikut :
YEAR
Cash flow ( A)
Cash flow ( B)
-$300,000
135,000
-$300,000
1
68,950
2
83,900
105,500
3
93,200
75,000
4
105,600
55,600
5
115,600
45,600
a. What is the IRR for each of this project (range: 10-16%)? Using the IRR decision rule, which
project should the company accept? How do you interpret IRR of a project?
Berapakah IRR projek diatas (range:10-16%)? Dengan menggunakan pengambilan keputusan
IRR, projek manakah yang harus diambil? Bagaimana anda mengartikan IRR dari sebuah
projek?
b.
If the required return is 15%, what is the NPV of these projects? Which project will the
company choose if it applies the NPV decision rule? How do you interpret NPV of a project?
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