Cenderawasih Holdings is evaluating two (2) mutually exclusive projects that require an initial investment of RM50,000. The cash flows for each project are gi as follows: Year Project Delima Projek Nilam RM10,000 RM15,000 RM20,000 RM15,000 3. RM26,000 RM15,000 RM25,000 RM15,000 5. RM15,000 RM15,000 Assume the cost of capital is 16 percent. Compute the Net Present Value (NPV) for each investment. 2.
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- Tropical Candy Inc are considering two mutually-exclusive projects, A and B. Their cash flows are shown below. Both Project A and Project B have an estimated cost of capital of 10%. Cash flows will be realized at the end of each time period. Year, t Project A Cash Flow at time t Project B Cash Flow at time t 0 -1800 -600 1 110 660 2 263.78 72.6 3 133.1 53.24 4 1024.87 146.41 5 3221.02 1610.51 Calculate the NPV for each project. Which, if either, project should be accepted? Why? Are there other capital budgeting criteria? If yes, list at least one.a company is deciding between two mutually exclusive projects. the cash flows are shown below. year 0 project a -$1,000 project b -$1,000 ywar 1 project a 550 project b 400 year 2 project a 550 projecy b 600 year 3 project a 550 project b 900 if the cosy of capital is 10% which project should the compsny selectOrg Pvt. Ltd. is considering two mutually exclusive capital investments. The project’s expected net cash flows are as follows: Expected Cash Flows Year Project A Project B0 -400 -575 1 95 150 2 110 200 3 118 250 4 125 275 5 140 230 6 150 180 each project’s cost of capital was 10% b. What is each project’s IRR?
- K.Broni Company is considering two mutually exclusive investments. Project P and Project The expected cash flows of these projects are as follows: Year Project (P) Project (Q) ($) ($) 0 (1,000) (1,600) 1 (1,200) 200 2 (600) 400 3 (250) 600 4 2,000 800 5 4,000 100 (a) Which project would you choose if the cost of capital is 10 percent? 20 percent? (b) Critically examine the superiority and…ZumBahlen Inc. is considering the following mutually exclusive projects: Year 0 1 2 3 4 Project A Cash Flow -$5,000 O a. 16.15% O b. 20.15% O c. 18.15% O d. 22.15% 200 800 Project B Cash Flow -$5,000 3,000 3,000 3,000 5,000 At what cost of capital will the net present value of the two projects be the same? (That is, what is the "crossover" rate?) 800 200Cummings Products is considering two mutually exclusive investments whose expected net cash flows are as follows: expected Net Cash Flows Year Project A Project B 0 ($400) ($650) 1 -528 210 2 -219 210 3 -150 210 4 1100 210 5 820 210 6 990 210 7 -325 210 a. Construct NPV profiles for Projects A and B. b. What is each project’s IRR? c. If each project’s cost of capital were 10%, which project, if either, should be selected? If the cost of capital were 17%, what would be the proper choice?d. What is each project’s MIRR at the cost of capital of 10%? At 17%? (Hint: Consider Period 7 as the end of Project B’s life.)e. What is the crossover rate, and what is its significance?
- A. Kedah Airport Bhd is considering two mutually exclusive projects. The cash flows of the projects are as follows: Project A -RM4,000,000 Project B -RM4,000,000 Year 1 RM1,000,000 RM1,000,000 RM1,000,000 RM1,000,000 RM1,000,000 RM1,000,000 4. RM1,000,000 RM11,000,000 Compute the net present value (NPV) and internal rate of return (IRR) for the above two projects, assuming a 13% required rate of return. YOUR ANSWER START HERE.. Based in your answer in (A), explain the ranking conflict between IRR and NPV for project A and project B.abc pvt ltd is considering two mutually exclusive capital investments. the projects expected net cash flows are as follows: year project a project b 0 -375 -575 1 -300 190 2 -200 190 3 -100 190 4 600 190 5 600 190 6 926 190 7 -200 0 if you were told that each projects cost of capital was 12%, whic project sholud be selected using the NPV criteria? what is each projects IRR? what is the regular payback period for these two projects? what is the portfolio index for each project if the cost of capital is 12%?abc pvt ltd is considering two mutually exclusive capital investments. the projects expected net cash flows are as follows: year project a project b 0 -375 -575 1 -300 190 2 -200 190 3 -100 190 4 600 190 5 600 190 6 926 190 7 -200 0 if you were told that each projects cost of capital was 12%, whic project sholud be selected using the NPV criteria? what is each projects IRR? what is the regular payback period for these two projects? what is the portfolio index for each project if the cost of capital is 12%? 1.explain the portfolio index of each project if the cost of capital is 12%?
- K.Broni Company is considering two mutually exclusive investments. Project P and Project The expected cash flows of these projects are as follows: Year Project (P) Project (Q) ($) ($) 0 (1,000) (1,600) 1 (1,200) (200) 2 (600) (400) 3 (250) (600) 4 (2,000) (800) 5 (4,000) (100) (a) Construct the NPV profiles for Projects P and Q. (b) What is the IRR of each project? (c) Which project would you choose if…The following are the cash flows of two independent projects: Year Project A Project B 0 $250) $(250) 1 130 150 2 130 150 3 130 150 4 130 a. If the opportunity cost of capital is 10%, calculate the NPV for both projects.Pound Industries is attempting to select the best of three mutually exclusive projects. The initial investment and after-tax cash inflows associated with these projects are shown in the following table Cash flows Project A Project B Project CInitial investment (CF0) $60,000 $100,000 $110,000Cash inflows (CFt), t = 1 to 5 $20,000 $ 31,500 $ 32,500 x. Calculate the payback period for each project.y. Calculate the net present value (NPV) of each project, assuming that the firm has a cost of capital equal to 13%.
