For the four revenue alternatives below, use the ROR method results to answer the question belowAlternativeABсDInitialInvestment, $-60,000-90,000-140,000-190,000Alternative DOverall ROR, Ai*% When Compared with Alternative¡*%ABс11.722.217.915.843.322.517.810.010.0Problem 08.034.c- Choose from more than two alternatives based on incremental ROR analysis✓should be selected.10.0Which one should be selected if the MARR is 10% per year and the alternatives are mutually exclusive?

Incremental IRR rule:If incremental IRR is greater than or equal to MARR, then select project with…

Answered: For the four revenue alternatives…

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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27. Net Present Value (NPV) and Internal Rate of Return (IRR) calculation results for three separate projects appear below (the required rate of return is 8 %). NPV ($2,000) Project A Project B Project C $0 $4,500 IRR 7% 8% 9% nem moo nesto zi boheq asdysg sdT IS Which of the following statements is TRUE? 17. A) Project C is acceptable under NPV but is not acceptable under IRR B) Project A is not acceptable under NPV but is acceptable under IRR C) Project B is not acceptable for NPV but is acceptable for IRR D) Project C is acceptable for NPV and is acceptable for IRR bato eulsy inszeng ten ( muten to sien isme 1976512 21 700j0rqs tot bohaq absdysg s'll SS lly being (A
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How I resolve this problems please give me the detail A firm has the following investment alternatives: Year A B C 1 $400 $--- $---- 2 400 400 ---- 3 400 800 ---- 4 400 800 1,800 Each investment cost of capital is 10 percent a. What is each investment's internal rate of return? b. Should the firm make any of theses investment? C. What is each investemtn's net present value? d. Should the firm make any of these investment
Based on the information below which projects will we choose based on weighted average profitabiltity Index if we only have OMR500,000 to invest? Project NPV Investment PI A 130,000 200,000 B 241,250 225,000 C 294,250 275,000 D 262,000 250,000 Select one: a. WAPI AD b. WAPI AB c. WAPI BD d. WAPI BC
please be soecific w answer pls complete the box
Compute the Pl statistic for Project X and note whether the firm should accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 10 percent. Time: Cash flow: Multiple Choice 0 1 -250 75 -0.0977 percent, reject 24.41 percent, accept -9.77 percent, reject -24.41 percent, reject 2 0 3 100 4 5 75 50
2. Determine Project Y’s payback period The numerator drop down options are: accounts receivable, annual net cash flow, average total assets, cost of goods sold, current assets, current liabilities, income, initial investment, net sales the denominator drop down options are: accounts receivable, annual net cash flow, average total assets, cost of goods sold, cost of investment, current asssets, current liabilities, income, interest expense, net sales
The Company has three potential projects from which to choose. Selected information on each of the three projects follows: Project A Project B Project C Investment required $44,400 $55,700 $53,100 Net present value of project $49,100 $74,100 $69,100 Using the profitability index, rank the projects from most profitable to least profitable. A, B, C B, A, C B, C, A C, B, A
Average rate of return method, net present value method, and analysis for a service company The capital investment committee of Iguana Inc. is considering two capital investments. The estimated operating income and net cash flows from each investment are as follows: Year Robotic AssemblerOperating Income Robotic AssemblerNet Cash Flow WarehouseOperating Income WarehouseNet Cash Flow 1 $47,500 $152,000 $100,000 $243,000 2 47,500 152,000 76,000 205,000 3 47,500 152,000 38,000 144,000 4 47,500 152,000 17,000 99,000 5 47,500 152,000 6,500 69,000 Total $237,500 $760,000 $237,500 $760,000 Each project requires an investment of $500,000. Straight-line depreciation will be used, and no residual value is expected. The committee has selected a rate of 15% for purposes of the net present value analysis. Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747…
4. We only have OMR 800,000 to invest. Which do we select based on Weighted average profitability index method ? Project NPV Investment PI A 430,000 500,000 B 241,250 225,000 C 394,250 375,000 D 262,000 575,000

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