Lloyd Enterprises has a project which has the following cash flows: Cash Flow -$200,000 50,000 100,000 150,000 40,000 25,000 Year 0 OHNMIN 1 2 3 4 5 The cost of capital is 10 percent. What is the project's discounted payback? a. 1.8763 years b. 2.0000 years c. 2.3333 years d. 2.4793 years e. 2.6380 years

Lloyd Enterprises has a project which has the following cash flows: Cash Flow -$200,000 50,000 100,000 150,000 40,000 25,000 Year 0 OHNMIN 1 2 3 4 5 The cost of capital is 10 percent. What is the project's discounted payback? a. 1.8763 years b. 2.0000 years c. 2.3333 years d. 2.4793 years e. 2.6380 years

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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Pet World is considering a project that has the following cash flow data. Year Cash flows 0 -$9,500 1 2 3 4 $2,000 $2,025 $2,050 $2,075 $2,100 If the required rate of the return on similar projects is 3%, the firm should IRR is 5 this project because its accept; 2.31% reject; 2.57% reject; 2.82% reject; 2.08% accept; 3.10%
Yellow Day has a project with the following cash flows: Year Cash Flows 0 −$ 25,500 1 9,800 2 14,300 3 8,820 4 −2,850 What is the MIRR for this project using the reinvestment approach? The interest rate is 8 percent. Multiple Choice 7.31% 8.14% 9.77% 8.78% 9.50%
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If cash flow for a project are as follows, YEAR 0 1 2 3 4 BENEFITS -100000 25000 40000 40000 50000 the discount rate is 12% find The benefit cost Ratio of the project the net benefit cost ratio of the project Should the investor invest in the project
21
Your division is considering two projects with the following cash flows (in millions): Year 1 3 $5 $17 $10 $6 5% Project A -$25 Project B -$20 a. What are the projects' NPVs assuming that the WACC is 5%, 10%, and 15%? WACC NPV-A NPV-B WACC 10% 0 15% 2 NPV-A $10 $9 NPV-B b. What are the projects' IRRs? c. If the WACC was 10%, ad A and B were mutually exclusive projects, which project would you choose?
Your division is considering two projects with the following cash flows (in millions): 0 1 2 3 Project A -$35 $4 $14 $20 Project B -$15 $8 $5 $4 What are the projects' IRRs assuming the WACC is 5%? Do not round intermediate calculations. Round your answer to two decimal places.Project A: %Project B: % What are the projects' IRRs assuming the WACC is 10%? Do not round intermediate calculations. Round your answer to two decimal places.Project A: %Project B: % What are the projects' IRRs assuming the WACC is 15%? Do not round intermediate calculations. Round your answer to two decimal places.Project A: %Project B: %
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Millano Company is considering a project that has the following cash flow data. What is the project's IRR? Year 0 1 2 3 Cash flows −$123,400 $36,200 $54,800 $48,100 a. 5.96% b. 6.04% c. 6.09% d. 5.93% e. 6.13%
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