Compute the NPV statistic for Project appro percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project U Time: 0 Cash flow: -$1,250 1 $450 2 3 4 5 $1,730 -$570 $400 -$150 NPV
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- Whispering Winds Company is considering a long-term investment project called ZIP. ZIP will require an investment of $130,000. It will have a useful life of four years and no salvage value. Annual cash inflows would increase by $81,000, and annual cash outflows would increase by $40,500. In addition, the company's required rate of return is 10% Click here to view the factor table (a) Calculate the net present value on this project. (If the answer is negative, use either a negative sign preceding the number eg-5,275 or parentheses es. (5,275), For calculation purposes, use 5 decimal places as displayed in the factor table provided, eg. 1.25124 and final answer to O decimal places, eg. 5,275) Net present value $ Identify whether the project should be accepted or rejected. The project should be (b) Q Search 458 PMU3 Company is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are as follows. Capital investment Annual net income: Total Year 1 (a) 2 Project Bono 3 4 Project Edge 5 Project Bono $160,000 14,000 Project Clayton 14,000 14,000 Click here to view the factor table. 14,000 14,000 $70,000 Project Edge Project Clayton $175,000 $200,000 18,000 17,000 16,000 12,000 9,000 $72,000 Depreciation is computed by the straight-line method with no salvage value. The company's cost of capital is 15%. (Assume that cash flows occur evenly throughout the year.) years 27,000 years 23,000 Compute the cash payback period for each project. (Round answers to 2 decimal places, e.g. 10.50.) years 21,000 13,000 12,000 $96,000Compute the NPV for Project M if the appropriate cost of capital is 7 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project M Time: Cash flow: 2 4 -$1,100 $370 $500 $540 $620 $120 NPV Should the project be accepted or rejected? O accepted O rejected MacBook Alr
- Use the information for the question(s) below. Project A - 10,000 Project B Time 0 - 10,000 Time 1 5,000 4,000 Time 2 4,000 3,000 Time 3 3,000 10,000 If WiseGuy Inc. uses IRR rule to choose projects, which of the projects (Project A or Project B) will rank highest? OA. Project A OB. Project B OC. Project A and Project B have the same ranking OD. Cannot calculate a payback period without a discount rate.Hello, Please assist w NPV and payback method calculations for following data: Project B completion time probability should be 0.2 for 24mo instead of 0.10 ThanksCompute the NPV statistic for Project Y if the appropriate cost of capital is 11 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project Y Time: 1 4 Cash flow: -$9,000 $3,550 $4,380 $1,720 $500 NPV Should the project be accepted or rejected? O accepted O rejected
- Compute the NPV for Project M if the appropriate cost of capital is 7 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project M Time: 0 1 2 3 4 5 Cash flow: −$1,400 $430 $560 $600 $680 $180 Should the project be accepted or rejected?multiple choice accepted rejectedMonty Manufacturing Company is considering three new projects, each requiring an equipment investment of $25,200. Each project will last for 3 years and produce the following cash flows. Year 1 2 3 Total AA (a) 16,000 $8,000 $10,900 $12,000 10,000 BB $34,000 $32,700 10,900 Click here to view PV tables. 10,900 Payback period The salvage value for each of the projects is zero. Monty uses straight-line depreciation. Monty will not accept any project with a payback period over 2.2 years. Monty's minimum required rate of return is 12%. Most desirable Least desirable CC 11,000 Your answer has been saved. See score details after the due date. 10,000 Compute each project's payback period. (Round answers to 2 decimal places, e.g. 52.75.) $33,000 Project CC AA Indicating the most desirable project and the least desirable project using this method. Project AA V 2.72 years BB 2.31 years CC 2.20 years Attempts: 1 of 1 usedConstruct NPV profiles for Projects A and B. Round your answers to the nearest cent. Do not round your intermediate calculations. Negative value should be indicated by a minus sign. Discount Rate NPV Project A NPV Project B 0% $ $ 5 $ $ 10 $ $ 12 $ $ 15 $ $ 18.1 $ $ 23.01 $ $ The exel sheet is down below for the entirre question! Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to two decimal places. Do not round your intermediate calculations. % What is each project's MIRR at a WACC of 18%? Round your answer to two decimal places. Do not round your intermediate calculations. Project A: % Project Acceptance: WACC 13.00% Accept #N/A WACC 18.00% NPVA $2.66 NPVB $53.19 Accept #N/A NPV Profiles:…
- Ch 11: Assignment - The Basics of Capital Budgeting Part II PTODIEM Vwalk-Tirougn A company has a 12% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 1 3 4 6. 7 Project A -$300 -$387 -$193 -$100 $600 $600 $850 -$180 Project B -$405 $131 $131 $131 $131 $131 $131 $0 a. What is each project's NPV? Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent. Project A: $ Project B: $ b. What is each project's IRR? Do not round intermediate calculations. Round your answers to two decimal places. Project A: % Project B: c. What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Do not round intermediate calculations. Round your answers to two decimal places. Project A: % Project B: % d. From your answers to parts a-c, which project would be selected? -Select-5a. EQ: Internal rate of return = the rate that equates inflows with outflows 5b. Rule: Accept the project if the IRR > the required return. 5c. EX: Reevaluate the project in "1c" using the IRR method and a 10% required return: IRR 9.70% REJECT 5d. Problem: Reevaluate the project in "3c" using the IRR method and an 11% required return. 6a. EQ: Modified IRR = [(FV of inflows) / Cost]/n - 1 6b. Rule: Accept the project if the MIRR > the required return. 6c. EX: Reevaluate the project in "1c" using the MIRR method, a 3% re-interest rate and a 10% required MIRR= [($10,000 x 3.0909) / $25,000] 1/3-1 = 0.0733 or 7.33% REJECT rate. 6d. Problem: Evaluate a project costing $100,000 and returning $25,000 annually for five years using the MIRR method, a 4% re-interest rate and a 9% required return. 7a. EQ: Profitability index = PV of the inflows / Cost 7b. Rule: Accept the project if the PI > 1. 7c. EX: Evaluate a project costing $25,000 and returning $10,000 annually for years 1-3 using the PI…PRINTED NAME _____________________________________________ Project X Project Y PB (payback) DPB (Discounted Payback) NPV $ PI IRR% MIRR% EAA (NUS) $ CROSSOVER RATE % NPV $ (using crossover rate) If the projects are INDEPENDENT, which would you choose? WHY? _____________________________________________________________ If the projects are MUTUALLY EXCLUSIVE, which would you choose? WHY? _____________________________________________________________ When you would be INDIFFERENT between the projects? WHY? _____________________________________________________________ SIGNATURE _____________________________________________________