EX_1. A venture capitalist is considering investing in several projects. You have researched several possibilities for her and come up with the following cash flow estimates. Which investment should you recommend for the venture capitalist to choose? First-Year Growth Cost of Capital Initial Project Investment Cash Flow Rate Dating App $250,000 $55,000 4% 7% Green Energy $350,000 $75,000 4% 8% Water Purification $400,000 $120,000 5% 8% "Smart" $500,000 $125,000 8% 12% Clothor

EX_1. A venture capitalist is considering investing in several projects. You have researched several possibilities for her and come up with the following cash flow estimates. Which investment should you recommend for the venture capitalist to choose? First-Year Growth Cost of Capital Initial Project Investment Cash Flow Rate Dating App $250,000 $55,000 4% 7% Green Energy $350,000 $75,000 4% 8% Water Purification $400,000 $120,000 5% 8% "Smart" $500,000 $125,000 8% 12% Clothor

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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Vijay
You are an angel investor, and 4 entrepreneurs have approached you to build some innovative folding tables, and the proposals are as follows. Project A, an investment of 566967 and annual cash flows respectively of 415527, 209635, 199906 and 298311. Project B, an investment of 439043 and annual cash flows respectively of 417004, 150449, 117975 and 384645. Project C, an investment of 628001 and annual cash flows respectively of 140108, 507720, 225467 and 147962. Project D, an investment of 450834 and annual cash flows respectively of 102735, 111878, 508753 and 154070. If the rate expected by you is 21.33% per year of compound interest. Which project is more profitable according to the NPV (Net Present Value)?Question 1 options: d c a b
Vishal
b) Calculate the profitability index (PI) of each project, assess its acceptability, and indicate which project is best using PI.
Hi there, I am working on this problem, how do i solve it without using excel? CCM ltd. has a budget of $32 million dollars to spend on these investments (the table attached). Choose the best combination of investments using the profitability index. The cost of capital is 6%. Cash flow from investments are all per year in perpetuity.
sanja
You work for an outdoor play structure manufacturing company and are trying to decide between the following two projects: (Click on the following icon in order to copy its contents into a spreadsheet.) Year-End Cash Flows ($ thousands) 1 19 39 Project Playhouse Fort You can undertake only one project. If your cost of capital is 8%, use the incremental IRR rule to make the correct decision. 0 - 27 - 78 2 20 50 IRR 28.2% 8.9% The incremental IRR is %. (Round to two decimal places.) With the incremental IRR at - 1.23% and the cost of capital of 8%, you should undertake the ▼ (Select from the drop-down menu.)
You work for an outdoor play structure manufacturing company and are trying to decide between the following two projects: (Click on the following icon in order to copy its contents into a spreadsheet.) Project Playhouse Fort Year-End Cash Flows ($ thousands) 1 2 18 IRR 33.8% 13.2% 52 You can undertake only one project. If your cost of capital is 7%, use the incremental IRR rule to make the correct decision. 0 -25 -75 The incremental IRR is%. (Round to two decimal places.) 20 39 Save OL
I need this question completed in 10 minutes
A new investor is considering investing in the Real Estate Investment Trust (REIT) with the following cash flows. REIT investment Cash Outflow RM20000 Year Cash Inflow RM15000 RM8000 RM12000 RM10000 RM8000 RM5000 If the cost of capital is 15% per annum, advise the investor on the course of action.
Finance
Please help me with this question thanks sir

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