If the payback on a project is 3.2 years will the discounted payback be more or will it be less than 3.2 years?

Q: Suppose your firm is considering investing in a project with the cash flows shown below, that the…

A: YearCash flow0-970117024303630463052306630Required return = 13%

Q: Project A (longer) has higher annualized net benefits than Project B (shorter). !) Does this mean…

A: The NPV i.e., Net Present Value is determined by taking the difference between the present value of…

Q: :If the annual worth value of an alternative is equals to a positive value, we consider this project…

A: MARR is Minimum acceptable rate of return

Q: Net Present Value You are evaluating two projects, Project A and Project B . Project A has a short…

A: Net Present Value(NPV) of a project is equivalent to the difference of the cash inflows present…

Q: You are considering Project A, with the following information (Assume all statistics given are…

A: The Capital Asset Pricing Model (CAPM) explains the relative rate of return for an asset or project…

Q: You are considering investing in a project with the following possible outcomes: Probability of…

A: The expected return is the value of profits that investment would provide on average. It is used by…

Q: 18. In a situation such as Acron's, where a one-time cost is followed by a sequence of cash flows,…

A: Using Excel for IRR: a. Goal Seek: Excel's Goal Seek is used to find the correct input when you know…

Q: Question: There are Two paybacks 1) Payback period X =  6 years and 2) Payback period Y =5 years…

A: Payback PeriodIt indicates the time period under which the initial investment or initial outlay is…

Q: The NPV and payback period What information does the payback period provide? Suppose you are…

A: Payout Period = 2.50 YearsCash Flow for Year 1 = cf1 = $325,000Cash Flow for Year 2 = cf2 =…

Q: If interest rates are ______, ______ projects will have positive NPVs.   Question 8 options:…

A: The objective of the question is to understand the relationship between interest rates and the Net…

Q: Expected value of profit Standard deviation of profit Coefficient of variation of profit Project A…

A: Standard deviation is absolute measure of risk. Higher the standard deviation, higher the risk.…

Q: Group of answer choices a. The payback period is the present value factor for the IRR. b. A project…

A: Introduction : The payback period refers to the time period it takes for a company to recover its…

Q: Suppose the firm estimates it's wacc to be 10%. Should the wacc be used to evaluate all of its…

A: All the activities and risk that exists in an organization are shown by WACC. Its nature is…

Q: Answer this question as it is pertaining to two MUTUALLY EXCLUSIVE projects on the following figure.…

A: IRR internal rate of return is where net present value is zero.

Q: Suppose the net present values ​​of projects A and B show a distribution as follows. Net Present…

A: Expected NPV (A)=750×0.1+1000×0.15+1250×0.2+1500×0.25+1750×0.3=75+150+250+375+525 Expected…

Q: A firm has two potential investment projects. The project information is summarised in the table…

A: Standard deviation of project A = 175 Standard deviation of project B = 370 Coefficient of variation…

Q: Suppose that your organization wants to decide which one of the given two projects can be…

A: The computations as follows: Hence, the EMV of project 1 is $36000.

Q: Which of the following factors are included in the rating analysis of a corporate​ bond? I. the​…

A: The rating analysis of a corporate bond typically involves evaluating multiple factors related to…

Q: 2. There are two projects, X and Y. the following probabılıty distribution for the projects are…

A: The return is the percentage of the amount received on the investment during the period.

Q: A firm has to choose between two possible projects, the outcome of which depend on whether the…

A: Under Expected NPV (ENPV) method, NPV on the basis of probability has to be calculated and the…

Q: What is required // calculate the required rate of return with an opinion on acceptance or rejection…

A: Rate of return is the return is the return received from an investment. It is the real return…

Q: which of the following do you need to know to calculate the IRR of a project?. 1. project's…

A: Companies use capital budgeting techniques to evaluate the projects. IRR is internal rate of return.…

Q: XYZ is evaluating a project that would require an initial investment of $74,900.00 today. The…

A: Internal  Rate of Return is also known as IRR. It is a capital budgeting techniques which help in…

Q: need answer step by step

A: The correct answer is D. If the NPV of the project is positive, the IRR must be higher than the…

Q: ould you use the Figure below that shows the net present value profile of two projects Y and W to…

A: Internal rate of return of a project is the discount rate at which the NPV of project is 0. The…

Q: Suppose that you could invest in the following projects but have only $29,700 to invest. How would…

A: Solution: As we have $29,700 to invest, therefore company should invest in project first that…

Q: 3 Which of the following methods of project analysis are biased towards short-term projects? Select…

A: when companies are evaluating investment projects, they often use different financial analysis…

Q: following a. The IRR is the discount rate that equates the present value of a project's expected…

A: IRR internal rate of return is minimum break even rate at which cost of capital equal to rate of…

Q: You estimate that a planned project for your company has a 0.3 chance of tripling the investment in…

A: Standard deviation = Where,Ri = returnPi = Probability.

Q: You must choose between the two projects below. What is the EMV for each? Looking at your own…

A: EMV of project is expected value of the project considering the probability situation of each…

Q: None

A: Step 1: Calculate the present value of each cash flow using the discount rate of 11%. Year 0: -1,140…

Q: 2.When comparing two projects with different lives, why do you compute an annuity with an equivalent…

A: Net present value (NPV) is the difference between the present value of cash inflows and the present…

Q: Consider two project alternatives, project I and project II, with their payoffs and their associated…

A: RRI stands for Relative Risk Index. It is a financial metric used to assess the risk adjusted…

Q: Coefficient of variation of Which project has a lower absoute risk level which project project would…

A: Standard Deviation: It is a measure of absolute risk for the investment. Greater the standard…

Q: Assume that you are faced with an opportunity made up of three equally likely outcomes. If the first…

A: Here, To Find: How much amount would be paid to take the risk =?

Q: The internal rate of return (IRR) on a project is the average annual rate of return provided by…

A: The internal rate of return also known as IRR is a key tool in evaluating projects and is vital for…

Q: Click on the following icon in order to copy its contents into a spreadsheet.) Cash Flow Today ($…

A: Net present value refers to the method of capital budgeting which is calculated by deducting the…

Q: What is the criterion to be taken as basis when deciding on the payback period? Is the payback…

A: Initial cash outlay means the initial cash expenditure which is required for the purpose of…

Q: If B.E.P=$200 in Project C rapidly becomes $500; but the Revenues is fixed ‎at $600 then expected…

A: Following is the answer to the given question

Q: Which project should you invest in according to the NPV and IRR? Project A NPV@ 10% WACC = $135 and…

A: Net present value is the difference between the present value of cash inflows and present value of…

Q: When comparing two projects with different lives, why do you compute an annuity with an equivalent…

A: When life of two mutually exclusive projects are different than NPV method does not give…

Q: Suppose that you found the probabilities and expected NPVs of 3 scenarios for a timing option:…

A: 1) Computation of expected NPV:

Q: Using image: a-1. What is the payback period for each project a-2. If you apply the payback…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: How would you rank the following alternative risky investment projects? Explain your answer…

A: Investment decision refers to the decisions taken by either potential investors or existing…

Q: 5. A firm evaluates all of its projects by applying the NPV rule. A project under consideration has…

A: The calculation of Net present value involve considering all the present value of cash inflow and…

Q: Basic NPV methods tell us that the value of a project today is NPV0. Time value of money issues also…

A: Net Present Value(NPV) method anticipate discounting of cash flows generated over the period of time…

Q: Which of the following statements is CORRECT? O a. The NPV profile graph for a normal project will…

A: The net present value method is an important technique of capital budgeting and the time value of…

Q: A project is economically feasible if: O a. ts future worth is less than zero O b. its annual worth…

A: Future worth is the sum of future value of cash flows. Annual worth is the equivalent annual cash…