Please correct answer and don't used hand raiting complexes, Faimer neights and Crerishaw Village. After comiering with the present owners, Mrs. Jackson rids developed the followingestimates of the cash flows for these properties.Palmer HeightsYearly Aftertax CashInflow (in thousands)Probability$ 40012450.2600.2750.2800.2Crenshaw VillageYearly Aftertax CashInflow (inthousands)Probability$ 450.2500.4600.2700.2a. Find the expected cash flow from each apartment complex.Note: Enter your answers in thousands (e.g. $10,000 should be enter as "10").Answer is complete but not entirely correct.Expected CashFlow (inthousands)Palmer HeightsCrenshaw VillageS53,000 x62,000Xb. What is the coefficient of variation for each apartment complex?Note: Do not round intermediate calculations. Round your answers to 3 decimal places.Coefficient ofVariationPalmer HeightsCrenshaw Village

Step 1:let X is random variable represents cash inflow for palmer heights in thousands and P(x )…

Answered: complexes, Faimer neights and Crerishaw…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 7E

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Mr. Sam Golff desires to invest a portion of his assets in rental property. He has narrowed his choices down to two apartment complexes, Palmer Heights and Crenshaw Village. After conferring with the present owners, Mr. Golff has developed the following estimates of the cash flows for these properties.       Palmer Heights Yearly AftertaxCash Inflow(in thousands) Probability $60 0.1 65 0.2 80 0.4 95 0.2 100 0.1    Crenshaw Village Yearly AftertaxCash Inflow(in thousands) Probability $65 0.2 70 0.3 80 0.4 90 0.1 a. Find the expected cash flow from each apartment complex. (Enter your answers in thousands (e.g, $10,000 should be enter as "10").)     b. What is the coefficient of variation for each apartment complex? (Do not round intermediate calculations. Round your answers to 3 decimal places.)     c. Which apartment complex has more…
3) Coefficient of variation and investment decision Mr. Sam Golff desires to invest a portion of his assets in rental property. He has narrowed his choices down to two apartment complexes, Palmer Heights and Crenshaw Village. After conferring with the present owners, Mr. Golff has developed the following estimates of the cash flows for these properties: Palmer Heights Crenshaw Village Yearly Aftertax Cash Inflow    (in thousands) Probability Yearly Aftertax   Cash Inflow             (in thousands) Probability $70.................. .2 $75..................... .2 75.................. .2 80..................... .3 90.................. .2 90..................... .4 105.................. .2 100..................... .1 110.................. .2 a. Find the expected cash flow from each apartment complex. b. What is the coefficient of variation for each apartment complex? c.…
Mr. John Backster, a retired executive, desires to invest a portion of his assets in rental property. He has narrowed his choices to two apartment complexes, Windy Acres and Hillcrest Apartments. The anticipated annual cash inflows from each are as follows:    Windy Acres Hillcrest Apartments   Yearly Aftertax Cash Inflow Probability   Yearly Aftertax Cash Inflow Probability $30,000 0.2 $35,000 0.4 35,000 0.2 40,000 0.2 50,000 0.2 50,000 0.1 65,000 0.2 60,000 0.3 70,000 0.2 a. Find the expected value of the cash flow for each apartment complex. (Enter the answers in thousands.)     Expected cash flow   Windy Acres $      Hillcrest Apartments $    b. What is the coefficient of variation for each apartment complex? (Do not round intermediate calculations. Round the final answers to 4 decimal places.) Coefficient of variation   Windy Acres      Hillcrest Apartments    c. Which apartment complex has more risk?…
A*) You are hired as financial manager in Abis Investment Co., you made cash flow projection for two different projects. You are asked to estimate the feasibility of the projects by using the following investment criteria: NPV, IRR, MIRR and BCR. They are mutually exclusive. Show all your calculation. The details of that projects are given below: Year 0 1 2 3 4 5 Project A -1,000 1,200 4600 1,800 -8,000 5,000 Project B -2,000 1,000 3600 800 8,000 500 Discount rates 12% 13% 12% 14% 15% 11%
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Bruin, Incorporated has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$ 41,300 -$ 41,300 1 19,100 6,300 2 17,800 14,200 B 4 15,200 17,900 8,400 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? 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? a-1. Project A Project B a-2. Project acceptance b-1. Project A Project B b-2. Project acceptance % %
Information on four investment proposals is given below:Investment ProposalA B C DInvestment required ........................ $(90,000) $(100,000) $(70,000) $(120,000)Present value of cash inflows ......... 126,000 138,000 105,000 160,000Net present value ............................ $ 36,000 $ 38,000 $ 35,000 $ 40,000Life of the project ............................ 5 years 7 years 6 years 6 yearsRequired:1. Compute the project profitability index for each investment proposal.2. Rank the proposals in terms of preference.
Fransico Ltd. is trying to determine which of three projects it wants to invest in. All three projects have been analyzed into Net Present Value amounts. (Round your answers to two decimal places when needed and use rounded answers for all future calculations). 1. Calculate the Net Present Value based on the following information: Cash Flows Project 2 Project 6 Project 12 Present Value of net cash inflows $491,900 $778,300 $503,700 Initial InvestmentSingle line $146,000Single line $407,400Single line $206,400Single line Single lineNet Present ValueDouble line Single lineDouble line Single lineDouble line Single lineDouble line 2. Calculate the Profitability Index for each of the projects. Round to two decimal places. Project Present value of net cash inflows / Initial Investment = Profitability Index 2 / = 6 / = 12 / = 3. Based on the Profitability Index, which project should be selected?
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