Consider the following teomutually exclusive projects X20600, 9000 9400 8950 Y20600 10400 7950 8850calculate the irr for each project,what is the crossover rate, whatis the npv of the projects x and ywith a discount rate of 0, 15,and 25%

Using Excel to get the IRR use this code:For Project x: =IRR(B2:B5)For Project y: =iRR(C2:C5)Project…

Answered: Consider the following teo mutually…

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

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3) could you use the Figure below that shows the net present value profile of two projects Y and W to answer the following questions: What is the internal rate of return on project Y? Determine the “approximate” discount rate at which you would be indifferent between the two projects Find the “approximate” net present value of project W when the discount rate is 4%.
7. IRR (S5.3) Calculate the IRR (or IRRS) for the following project: Co C₁ +3,500 -3,000 For what range of discount rates does the project have a positive NPV? +4,000 C3 -4,000
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Answer this question as it is pertaining to two MUTUALLY EXCLUSIVE projects on the following figure. At what discount rate will you be indifferent to these two projects under the NPV rule? Group of answer choices 0% 8% 11% 14%
NPV versus IRR (LO1, 5) Consider the following two mutually exclusive projects: Year 0 Cash Flow (X) -$20,000 Cash Flow (Y) 2 3 8,850 9,100 8,800 -$20,000 10,100 7,800 8,700 Sketch the NPV profiles for X and Y over a range of discount rates from 0 to 25%. What is the crossover rate for these two projects?
Answer this question as it is pertaining to two MUTUALLY EXCLUSIVE projects on the following figure. Given r=6%, which project would you choose if you decide to use the internal rate of return (IRR) as the criterion? Group of answer choices Project A Project B Neither Either
a. Calculate the projects’ NPVs, IRRs, MIRRs, regular paybacks, and discounted paybacks.b. If the two projects are independent, which project(s) should be chosen?c. If the two projects are mutually exclusive and the WACC is 10%, which project(s)should be chosen?d. Plot NPV profiles for the two projects. Identify the projects’ IRRs on the graph.e. If the WACC was 5%, would this change your recommendation if the projects weremutually exclusive? If the WACC was 15%, would this change your recommendation?Explain your answers.f. The crossover rate is 13.5252%. Explain what this rate is and how it affects the choicebetween mutually exclusive projects.g. Is it possible for conflicts to exist between the NPV and the IRR when independentprojects are being evaluated? Explain your answer.h. Now look at the regular and discounted paybacks. Which project looks better whenjudged by the paybacks?i. If the payback was the only method a firm used to accept or reject projects, what paybackshould it…
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 _____________________________________________________
You are considering the following two mutually exclusive projects. The crossover rate between these two projects is ___ percent and Project ___ should be accepted if the required return is greater than the crossover rate. Year : Project A : Project B 0 : −$ 29,000 : −$ 29,000 1 : 11,000 : 19,120 2 : 11,000 : 9,000 3 : 19,000 : 11,140
Given the following two mutually exclusive projects, always choose Project A (the project with a higher IRR). Project NPV IRR A $100 10.5% B $150 9.5% Group of answer choices True False
You are considering the following two mutually exclusive projects. The crossover rate between these two projects is crossover rate. Year Project A Project B 0 1 23 $28,000 10,500 10,500 18,500 $28,000 18,610 8,500 10,630 percent and Project_ should be accepted if the required return is greater than the
Please show calcualtions: a) Calculate the NPV and IRR for the following project with a discount rate of 10% - ncf yr 0 = -250,000, ncf yr 1 = 200,000, ncf yr 2 = 350,000, ncf yr 3 = 300,000, ncf yr 4 = 300,000, ncf yr 5 = -50,000

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Consider the following teo mutually exclusive projects X 20600, 9000 9400 8950 Y 20600 10400 7950 8850 calculate the irr for each project, what is the crossover rate, what is the npv of the projects x and y with a discount rate of 0, 15, and 25%