Garage, Inc., has identified the following two mutually exclusive projects:Year-$ 29,10014,50012,4009,2505,150Cash Flow (A) Cash Flow (B)-$ 29,1004,3509,85015,30016,900a-1 What is the IRR for each of these projects? (Do not round intermediate calculations. Enter youranswers as a percent rounded to 2 decimal places, e.g., 32.16.)IRRProject A%Project B%a-2 Using the IRR decision rule, which project should the company accept?O Project AO Project Ba-3 Is this decision necessarily correct?YesNob-1 If the required return is 12 percent, what is the NPV for each of these projects? (Do not roundintermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)NPVProject A$Project B$b-2 Which project will the company choose if it applies the NPV decision rule?O Project AProject Bc. At what discount rate would the company be indifferent between these two projects? (Do not roundintermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g.,32.16.)Discount rate%eBook & ResourceseBook: 9.5. The Internal Rate of ReturnCheck my workO1234

When there is a conflict between the NPV and IRR. NPV rule will prevail.

Garage, Inc., has identified the following two mutually exclusive projects: Cash Flow (A) Cash Flow (B) -$ 29,100 14,500 12,400 9,250 5,150 Year 1 2 3 4 -$ 29,100 4,350 9,850 15,300 16,900 a-1 What is the IRR for each of these projects? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) IRR Project A % Project B %

Garage, Inc., has identified the following two mutually exclusive projects: Cash Flow (A) Cash Flow (B) -$ 29,100 14,500 12,400 9,250 5,150 Year 1 2 3 4 -$ 29,100 4,350 9,850 15,300 16,900 a-1 What is the IRR for each of these projects? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) IRR Project A % Project B %

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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Compute the NPV statistic for Project U if the appropriate cost of capital is 11 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and roundyour final answer to 2 decimal places.) Project U Time: 0 1 2 3 4 5 Cash flow: -$2, 500 $750 $2, 480 -$720 $700 -$300
Compute the net present value for each project. (Round answers to 0 decimal places, e.g. 125. If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Project Bono Project Edge Project Clayton Net present value $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places Save for Later
Compute the NPV statistic for Project Y if the appropriate cost of capital is 11 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project Y Time: 0 1 2 3 4 Cash flow: −$8,200 $3,670 $4,500 $1,840 $620
A firm evaluates all of its projects by applying the IRR rule. Year 0 1 2 3 Cash Flow -$ 149,000 67,000 72,000 56,000 What is the project's IRR? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Assets Cash Receivables (net) Inventory PP & E (net) Patents&Licenses Goodwill Total assets Liabilities & Equity Accounts payable Short term debt Long term debt Preferred stock Common Equity Total Liabilities + Equity New Chip Corp Balance Sheet at 12/31/22 ($ in Millions) 31 45 64 215 28 19 402 53 19 179 23 128 402
a) the NPV for project "standard" is $19,972,824.09. (round to the nearest cent) The NPV for project "custom" is $ ??? (round to the nearest cent). How do I find the calculation for this?
Consider the following information: Cash Flows ($) Project C0 C1 C2 C3 C4 A –5,300 1,300 1,300 2,700 0 B –700 0 600 2,300 3,300 C –5,200 3,400 1,700 800 300 a. What is the payback period on each of the above projects? (Round your answers to 2 decimal places.)
Compute the IRR statistic for Project E. The appropriate cost of capital is 8 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Project E Time: 0 1 2 3 4 5 Cash flow −$1,300 $470 $570 $580 $360 $160 IRR?
A potential new project involves an up-front (year 0) increase in inventories of $760. In your cash flow table, the cash flow impact of that change in year 0 only should be $__________. Do not round any intermediate work, but round your final answer to 2 decimal places (ex: 12.34567 should be entered as 12.35). Do not enter the $ sign. Include a negative sign if your answer is negative.
Subject: acounting
(b) Compute the net present value for each project. (Round answers to O decimal places, e.g. 125. If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value Save for Later $ Project Bono $ Project Edge $ Project Clayton Attempts: 0 of 4 used Submit Answer
.

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