Cooper Electronics uses NPV profiles to visually evaluate competing projects. Key data for the two projects under consideration are given in the following​ table: Initial investment    28,000    24,000 Year    Operating cash inflows     1    8,000    7,000 2    12,000    10,000 3    10,000    7,000 4    9,000    7,000   Terra Firma Initial Investment $28000 $24000 Year Cash Flows 1 $8000 $7000 2 $12000 $10000 3 $10000 $7000 4 $9000 $7000 Using these​ data, graph, on the same set of​ axes, the NPV profiles for each project using discount rates of 0​%, 8​%, and the IRR. The IRR of project Terra is 14.57% ​(Round to two decimal​ places.) The IRR of project Firma is 11.3​%. ​(Round to two decimal​ places.) If the discount rate is 0​%, the NPV of project Terra is $11000 (Round to the nearest​ cent.) If the discount rate is 0​%, the NPV of project Firma is $7000. (Round to the nearest​ cent.) If the discount rate is 8​%, the NPV of project Terra is $4249.06. ​(Round to the nearest​ cent.) If the discount rate is 8​%, the NPV of project Firma is ​$1756.90. ​(Round to the nearest​ cent.) If the discount rate is the​ project's IRR, the NPV of project Terra is ​$______. ​(Round to the nearest​ cent.) If the discount rate is the​ project's IRR, the NPV of project Firma is ​$______. ​(Round to the nearest​ cent.)

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
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Cooper Electronics uses NPV profiles to visually evaluate competing

projects.

Key data for the two projects under consideration are given in the following​ table:

Initial investment    28,000    24,000
Year    Operating cash inflows    
1    8,000    7,000
2    12,000    10,000
3    10,000    7,000
4    9,000    7,000
  Terra Firma
Initial Investment $28000 $24000
Year Cash

Flows

1 $8000 $7000
2 $12000 $10000
3 $10000 $7000
4 $9000 $7000

Using these​ data, graph, on the same set of​ axes, the NPV profiles for each project using discount rates of 0​%, 8​%, and the IRR.

The IRR of project Terra is 14.57% ​(Round to two decimal​ places.)
The IRR of project Firma is 11.3​%. ​(Round to two decimal​ places.)
If the discount rate is 0​%, the NPV of project Terra is $11000 (Round to the nearest​ cent.)
If the discount rate is 0​%, the NPV of project Firma is $7000. (Round to the nearest​ cent.)
If the discount rate is 8​%, the NPV of project Terra is $4249.06.
​(Round to the nearest​ cent.)
If the discount rate is 8​%, the NPV of project Firma is
​$1756.90. ​(Round to the nearest​ cent.)
If the discount rate is the​ project's IRR, the NPV of project Terra is
$______. ​(Round to the nearest​ cent.)

If the discount rate is the​ project's IRR, the NPV of project Firma is

$______. ​(Round to the nearest​ cent.)
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