Kara, Incorporated, imposes a payback cutoff of three years for its internationalinvestment projects.Cash Flow (A)-$ 40,00014,00018,00017,00011,000Cash Flow (B)-$ 55,00011,00013,00016,000255,000YearWhat is the payback period for both projects? (Do not round intermediate calculationsand round your answers to 2 decimal places, e.g., 32.16.)Project AProject ByearsyearsWhich project should the company accept?O Project AO Project BO1234

Statement of accumulated cash flow Year Cash flow Accumulated cash flow A B C=Last year C+B 0…

Answered: Kara, Incorporated, imposes a payback…

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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show clearly the calculations for the pay back period for each project
1. Kara, Incorporated, imposes a payback cutoff of three international investment projects. Year Cash Flow (A)Cash Flow (B) -$ 73,000 0 1 2 3 4 $63,000 24,500 31,000 22,500 9,500 16,500 19,500 29,000 233,000 What is the payback period for both projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) What is the payback period for both projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
-) Hanse, Incorporated, has the following two mutually exclusive projects available. Year 0 Project R -$ 47,000 Project S -$ 71,000 17,000 1234 17,000 23,000 5 9,000 5,000 18,000 18,000 33,000 29,000 7,000 a. What is the crossover rate for these two projects? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What is the NPV of each project at the crossover rate? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. S a. Crossover rate b. Project R Project S %
A project that provides annual cash flows of $11322 for eight years costs $80145 today. At what discount rate would you be indifferent between accepting the project and rejecting it? (Enter your answer as a percentage, omit the "%" sign in your response, and round your answer to 2 decimal places. For example, 0.12345 or 12.345% should be entered as 12.35.)
answer need..
2.1 Calculate the Payback Period of both projects (answers expressed in years, months and days.) Which project would you choose on the basis of payback period? Why?2.2 Calculate the Accounting Rate of Return for both projects (answer expressed to two decimal places).2.3 Calculate the Net Present Value for both projects. (Round off amounts to the nearest Rand.)2.4 Based on your calculations from 2.1 – 2.3, which project should Rothmans Limited choose? Why? .
A 180. Subject:- finance
Kara, Incorporated, imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available. Year Cash Flow (A) -$ 59,000 Cash Flow (B) 01234 24,000 31,400 26,000 12,000 -$ 104,000 26,000 31,000 28,000 236,000 a. What is the payback period for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. Which, if either, of the projects should the company accept? a. Project A years Project B years b. Project acceptance Accept Project A and reject Project B
need both
An interior design studio is trying to choose between the following two mutually exclusive design projects: Year 0 1 2 3 Cash Flow Cash Flow (0) -$64,000 31,000 31,000 31,000 a-1 If the required return is 10 percent, what is the profitability index for both projects? (Round your answers to 3 decimal places. (e.g., 32.161)) Project I Project II -$18,000 9,700 9,700 9,700 Profitability Index a-2 If the company applies the profitability index decision rule, which project should the firm accept? O Project I O Project II Project I Project II b-1 What is the NPV for both projects? (Round your answers to 2 decimal places. (e.g., 32.16)) O Project I Project II NPV b-2lf the company applies the NPV decision rule, which project should it take?
Andouille Spices, Incorporated, has the following mutually exclusive projects available. The company has historically used a three-year cutoff for projects. The required return is 13 percent. Year Project F 0 -$ 132,000 1 61,500 2 48,500 3 58,500 4 53,500 5 48,500 Project G -$ 202,000 41,500 56,500 88,500 118,500 133,500 a. Calculate the payback period for both projects. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. Calculate the NPV for both projects. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. c. Which project, if any, should the company accept? a. Project F Project G b. Project F Project G C. years years

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