The table below lists all of the investment opportunities available for the businesses of a small island country.Instructions: In part a, round your answers to 1 decimal place. In part b, enter your answer as a whole number.a. Calculate the expected rate of return for each project. Fill in the values in the table.ProjectLAABCDEFProject Cost,Millionsmillion$1592744716Expected NetRevenue,Millions$161028477.517b. If the nominal interest rate for investment borrowing is 12 percent and the expected inflation rate is 5 percent, what willbe this country's level of investment?Rate ofReturn,Percent

(a) Below is the required table:The below table shows the formulas used for the calculation:

Answered: d. Calculate the expected rate of…

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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Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$425,000 44,000 62,000 79,000 540,000 -$40,000 20,400 13,300 18,600 15,400 2 4 The required return on these investments is 10 percent. a. What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. What is the IRR for each project? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) d. What is the profitability index for each project? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) e. Based on your answers in (a) through (d), which project will you finally choose? a. Project A Project B b. Project A Project B c. Project A years years % Project B % d. Project A…
is 22 percent? Future Value and Multiple Cash Flows Wells, Inc., has identified an investment project with the following cash flows. If the discount rate is 8 LO 1 3. percent, what is the future value of these cash flows in Year 4? What is the future value at an interest rate of 11 percent? At 24 percent? Year Cash Flow $ 865 1,040 1,290 1,385 1 2 3 4
Consider a project with the following cash flows in dollars ($): Year Cash Flow0 -15,0001 50002 50003 50004 5000 Assume the appropriate discount rate for this project is 12%. What is the payback period for this project? (Round your answer to the tenths.)
a) It is estimated that a poultry project under consideration by the ministry of food and agriculture of the Republic of Ghana will cost GHȻ 200 million. This is expected to generate a net benefit of GHȻ 160 Million, GHȻ 100 , GHȻ 200, and GHȻ 360 million in the first ,second , third and fourth years respectively with a social rate of discount of 20%.Required:a) Calculate the Payback Period for this Project?b) What does this figure in (i) mean?c) Explain the term Net Present Value .d) What is the NPV of the above Project.
ternal rate of return and modified internal rate of return. Quark Industries has three potential projects, all with an initial cost of $1,900,000. Given the discount rate and the future cash flow of each project in what are the IRRS and MIRRS of the three projects for Quark Industries? Vhat is the IRR for project M? %3D Data Table % (Round to two decimal places.) (Click on the following icon in order to copy its contents into a spreadsheet.) Projoct O $1,000,000 S800,000 $600,000 $400,000 $200 000 15% Project M $500,000 $500.000 Cash Flow Project N Year 1 $600,000 $600.000 S600.000 S600.000 $600.000 11% Year 2 Year 3 $500.000 $500,000 S500,000 Year 4 Year 5 Discount rate 7%
please show your answer with the explanation and workings.
What is the INTERNAL RATE OF RETURN for project A? (Assume a discount rate of 8%) Year Project A Project Z 0 -$35,000 -$350,000 1 17,000 110,000 2 17,000 110,000 3 16,000 105,000 4 15,000 100,000 5 14,000 100,000 O 36.74% O 32.24% O 28.71% O 22.65% 13
3. Consider the following cash flows of the independent project. Assume discount rate is 12%. Years 3 Cash flow 40,000 0 (110,000) a. Find the Discounted Payback period (DPBP). b. Find the Net present value(PW) 1 2 20,000 30,000 c. Find the Internal rate of return (IRR) d. Find the External Rate of Return (ERR) 4 50,000 5 70,000
am. 191.
5. Project A has the net present value at a discount rate of 17% is $5,380 and at a rate of 19% the net present value is at ($2,670). What is the internal rate of return for the project? A 15.7% B 16.5% C 18.3% D 17.6%

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