Elysian Fields, Inc., uses a maximum payback period of 6 years and currently must choose between two mutually exclusive projects. Project Hydrogen requires an initial outlay of $30,000; project Helium requires an initial outlay of $34,000. Using the expected cash inflows given for each project in the following table, E, calculate each project's payback period. Which project meets Elysian's standards? The payback period of project Hydrogen is years. (Round to two decimal places.) Data Table (Click on the icon here D in order to copy the contents of the data table below into a spreadsheet.) Expected cash inflows Year Hydrogen $7,000 $5,500 $8,000 $4,000 $4,000 $2,500 Helium $7,000 $8,000 $7,000 $5,000 $6,000 $4,500 1 3 4 5 Print Done

Elysian Fields, Inc., uses a maximum payback period of 6 years and currently must choose between two mutually exclusive projects. Project Hydrogen requires an initial outlay of $30,000; project Helium requires an initial outlay of $34,000. Using the expected cash inflows given for each project in the following table, E, calculate each project's payback period. Which project meets Elysian's standards? The payback period of project Hydrogen is years. (Round to two decimal places.) Data Table (Click on the icon here D in order to copy the contents of the data table below into a spreadsheet.) Expected cash inflows Year Hydrogen $7,000 $5,500 $8,000 $4,000 $4,000 $2,500 Helium $7,000 $8,000 $7,000 $5,000 $6,000 $4,500 1 3 4 5 Print Done

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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Please show steps or formula, not excel. Project L costs $41,531.18, its expected cash inflows are $9,000 per year for 9 years, and its WACC is 14%. What is the project's IRR? Round your answer to two decimal places.
Project A requires an initial outlay at t = 0 of $4,000, and its cash flows are the same in Years 1 through 10. Its IRR is 17%, and its WACC is 11%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.
Elysian Fields, Inc., uses a maximum payback period of 6 years and currently must choose between two mutually exclusive projects. Project Hydrogen requires an initial outlay of $27,000; project Helium requires an initial outlay of $34,000. Using the expected cash inflows given for each project in the following table, Expected cash inflows Year Hydrogen Helium 1 $5,500 $7,500 2 $5,500 $6,500 3 $7,000 $7,500 4 $3,500 $4,500 5 $4,000 $5,500 6 $2,500 $5,000 calculate each project's paybackperiod. Which project meets Elysian's standards? PLEASE DONT ROUND
A company is deciding between two systems to purchase. System A has a purchase price of $21,000 and will generate cash flows of $6,000 at the end of each of the next 6 years. Alternatively the company can purchase System B for $11,000 and it will generate cash flows of $6,000 for each of the next 3 years. If the company's WACC is 11% and both "projects" can be repeated indefinitely, what is the EAA of System B? Do not round intermediate calculations. Round your final answer to the nearest whole number.
Please help me sir find the correct real asap
Project S requires an initial outlay at t=0 of $12,000, and its expected cash flows would be $4,000 per year for 5 years. Mutually exclusive Project L requires an initial outlay at t = 0 of $38,500, and its expected cash flows would be $9,200 per year for 5 years. If both projects have a WACC of 15%, which project would you recommend? Select the correct answer. Oa. Both Projects S and L, because both projects have NPV's > 0. Ob. Project S, because the NPVs > NPVL Oc. Both Projects S and L, because both projects have IRR's > 0. Od. Neither Project S nor L, because each project's NPV NPVs.
Project A requires an initial outlay at t = 0 of $1,000, and its cash flows are the same in Years 1 through 10. Its IRR is 16%, and its WACC is 11%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places. %
IronZee Industries is adding a new product line that will require an investment of $1,268,000. It is estimated this investment will have a 10-year life and will generate net cash inflows of $296,000 the first year, $266,000 during the second year, and $235,000 each year thereafter for 8 years. The project will have $0.00 residual value. Compute the ARR for the investment. (Round your answers to two decimal places when needed and use rounded answers for all future calculations). IronZee Industries Total net cash inflows during operation life of expansion Less: Total depreciation during operating life of expansion Total operating income during operating life Divide by: expansions operating life in years Average annual operating income from expansion (Amount Invested + Residual Value) / 2 / 2 = = / Average amount Invested Average annual operating income / Average amount invested = = ARR (%)
big Steve's, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $105,000 and will generate net cash inflows of $20,000 per year for 9 years. What is the project's NPV using a discount rate of 7 percent? Should the project be accepted? Why or why not? b. What is the project's NPV using a discount rate of 13 percent? Should the project be accepted? Why or why not? c. What is this project's internal rate of return? Should the project be accepted? Why or why not?
The Mansford Co. Evaluates projects using payback. Suppose that a project requiring an outlay of $816 dollars is followed by the following inflows for the next four years: Year 1 312 Year 2 459 Year 3 78 Year 4 210 What is the payback for this project to two significant places?
Company is evaluating two projects, Project A and Project B. The initial investment on both the projects are $25,000. Both have equal lives. The Project A will generate cash flows of $20,000 and $35,000 in year 2 and year 3. The Project B will generate $15,000 in yearI, $22,000 year-2, and $25,000 in year-3. If the required rate of return is 12%, then which project has the highest annual present worth (APW).
S

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