Consider the following cash flows of two mutually exclusive projects for Tokyo Rubber Company. Assume the discount rate for both projects is 9 percent. Year Dry Prepreg Solvent Prepreg 0 −$ 1,770,000 −$ 785,000 1 1,107,000 410,000 2 914,000 670,000 3 757,000 404,000 . What is the payback period for both projects? b. What is the NPV for both projects? c. What is the IRR for both projects? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Consider the following cash flows of two mutually exclusive projects for Tokyo Rubber Company. Assume the discount rate for both projects is 9 percent. Year Dry Prepreg Solvent Prepreg 0 −$ 1,770,000 −$ 785,000 1 1,107,000 410,000 2 914,000 670,000 3 757,000 404,000 . What is the payback period for both projects? b. What is the NPV for both projects? c. What is the IRR for both projects? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Name: . Consider the following cash flows of two mutually exclusive projects
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Description: . Consider the following cash flows of two mutually exclusive projects for Tokyo Rubber Company. Assume the discount rate for both projects is 9 percent. YearDry PrepregSolvent Prepreg0−$ 1,770,000−$ 785,00011,107,000410,0002914,000670,0003757,000404

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 7P

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Year	Dry Prepreg	Solvent Prepreg
0	−$ 1,770,000	−$ 785,000
1	1,107,000	410,000
2	914,000	670,000
3	757,000	404,000

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