Consider the following two projects:ProjectYear 0Year 1Year 2Year 3Year 4DiscountCash Flow Cash Flow Cash Flow Cash Flow Cash FlowRateA– 100405060N/A0.1В- 73303030300.1The net present value (NPV) of project B is closest to:А. 24.3В. 55.2С. 27.6D. 22.1

YEAR CASHFLOWS DISCOUNT FACTOR DISCOUNTED CASHFLOWS 0 73 1 30 0.909 27.27 2 30 0.826…

Answered: Consider the following two projects:…

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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Similar questions

What is the NPV of the following cash flows if the required rate of return is 0.09? Year 0 1 2 3 4 CF -3,935 687 1,937 3,189 968 Enter the answer with 2 decimals (e.g. 1000.23).
Pm.4
. Net Cash Flows and NPVs for different discount rate for projects S and L are given below Net Cash Flows ($) Discount Rate (%) NPVS NPVL Year (t) Project S Project L 0% $800 $1100 0 $(3000) $(3000) 5 554.32 1 1500 400 10 161.33 2 1200 900 15 (90.74) (259.24) 3 800 1300 20 (309.03) (565.97) 4 300 1500 h) If projects are independent (not mutually exclusive), which project(s) would you accept? i) at 5% ii) at 15%
D-78 Which of the following equations can be used to find the internal rate of return (i) for a project that hun initial investment of P, net annual cash flows of A, and salvage value of S after n years? (a) 0 = -P + AP/A, i%,n) + SP/A, i%, n) | (b) (Р — А)P/А, 1%, п) — SPIF, 1%, n) (с) — А %3D — РАР, %, п) — S(AF, i1%, п — 1) (d) 0 = -PF/P, i%,n) + A(F/A, i%, n) + S
Determine the ERR (External rate of return) of the cash flows if external rate (e) is given as %18. Cash Flow Year 0 1 2 3 4 5 6 Select one: a.0.3073 b.0.2988 c.0.2565 d.0.2638 e.0.3491 f.0.2783 -3000 2000 4000 -1000 3000 4000 -5000 9000
The cash flow streams for three alternative investment A, B, C andD are: Project Со Cash Flow (Tk.) C1 C2 C3 C4 C5 C6 A 230000 55000 45000 65000 45000 75000 50000 В 290000 45000 90000 35000 95000 65000 55000 310000 75000 55000 60000 55000 65000 45000 D 350000 77000 75000 95000 85000 65000 Determine (i) Pay Back Period, (ii) NPV if the required rate of return is 11%, and (ii) IRR for the four alternatives.
The projected cash flows for two mutually exclusive projects are as follows: t= 0 1 2 3 4 5 -150,000 20,000 10,000 0 0 250,000 - 150000 50,000 50,000 50,000 50,000 50,000The crossover rate is closest___________a. 5.72%b.6.89%c. 7.21%d. 8.32%
un.3
can u make the npv, using this format 1 2 3 4 5 Net income 5,175,140.21 5,448,761.67 5,709,496.33 7,789,606.88 6,251,091.31 PV 12%
16)For the following stream of free cash flows, calculate the internal rate of return. Year 0 1 2 3 4 5 Free Cash Flows -45,452 10,005 14,921 12,537 10,452 21,455 Group of answer choices 14.5% 12.7% 13.9% 11.5%
am. 233.
Po22.

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Consider the following two projects: Project Year 0 Year 1 Year 2 Year 3 Year 4 Discount Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow Rate A – 100 40 50 60 N/A 0.1 В - 73 30 30 30 30 0.1 The net present value (NPV) of project B is closest to: А. 24.3 В. 55.2 С. 27.6 D. 22.1