Mckenzi Construction Co. is trying to choose between two mutually exclusive projects below: Year 0 1 2 3 4. Project Bricks $-375,000 $110,000 Project Plywood $-375,000 $95,000 $95,000 $ 89,000 $95,000 $ 85,000 $95,000 $ 120,000 a. The NPV of Project Plywood is while that of Project Bricks is if the company's required return is 5%. Please enter the number only (in dollars) and round your answers to 2 decimal places, e.g., 32.16. b. I will select Please write the full name. based on the NPV values: Project Plywood vs. Project Bricks.
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- Coore Manufacturing has the following two possible projects. The required return is 13 percent. Year Project Y Project Z 0 -$ 28,600 -$ 51,000 1 14,600 14,000 2 13,000 37,000 3 15,400 12,0 What is the profitability index for each project? Note: Do not round intermediate calculations and round your answers to 3 decimal places, e.g 32.161. What is the NPV for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Which, if either, of the projects should the company accept?The graph below represents the IRR of one of the project your company is considering. $400,000 NPV Profile $300,000 $200,000 $100,000 $0 10% 20% 30% 40% 50% 60% 70% 80% 100% -$100,000 Ceesl of Gesppilial -$200,000 -$300,000 -$400,000 1. Explain why this project has two IRRS and not only one? 2. How can you make investing decision based on the above graph? Explain in details your answer. 3. If the cost of capital is 15%, are you going to accept investing in this project? Why. 4. What will be your decision if the cost of capital is 90%?i need the answer quickly
- Coore Manufacturing has the following two possible projects. The required return is 12 percent. Year Project Y Project Z 0 -$27,500 -$55,000 1 13,500 19,500 234 2 11,900 26,000 3 14,300 17,500 9,900 24,000 a. What is the profitability index for each project? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. Which, if either, of the projects should the company accept? a. Project Y Project Z 1.38 ง b. Project Y 3 decimal places required. Project Z c. Accept project xCoore Manufacturing has the following two possible projects. The required return is 10 percent. Project Y -$ 27,900 13,900 Project Z -$ 59,000 17,500 12,300 30,000 14,700 10,300 Year 0 1 2 3 4 15,500 28,000 a. What is the profitability index for each project? Note: Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 3- b. What is the NPV for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 3. c. Which, if either, of the projects should the company accept? a. Project Y Project Z b. Project Y Project Z c. Accept projectplease solve it on paper
- Kenny, Inc. has identified the following two mutually exclusive projects. Project A -$25,000 20,000 5,000 3,000 10,000 Considering 10% required return for both projects. Project B -S28,000 7,000 1,000 -2,000 Year 2 3 4 30,000 a. Calculate the NPV for each project, which one is more profitable? Why? b. If the payback cut-offis four years, which project should be accepted? Why? c. If the Internal Rate of Return (IRR) of projects A and B are 10% and 12% respectfully, which project would you choose? Why? d. Considering 10% required return, and applying profitability index criteria which investment would you choose? Why? e. After applying the last four investment criteria, which project should be chosen for investment and why?Q.1.Use the data below for problems 6 to 10. YearProj YProj Z 0($420,000)($420,000) 1400,000182,000 2185,000156,000 3—146,000 4—175,000 The projects provide a necessary service, so whichever one is selected is expected to be repeated into the foreseeable future. Both projects have an 11% cost of capital. 6. What is each project’s initial NPV without replication? 7. What is each project’s equivalent annual annuity? 8. Now apply the replacement chain approach to determine the shorter projects’ extended NPV. Which project should be chosen? 9. Now assume that the cost to replicate Project Y in 2 years will increase to $600,000 because of inflationary pressures. How should the analysis be handled now, and which project should be chosen?
- Hello, can you please answer this problem with excel and formulas, thank you! Kaleb Konstruction, Inc., has the following mutually exclusive projects available. The company has historically used a three-year cutoff for projects. The required return is 10 percent. Year Project F Project G 0 –$135,000 –$205,000 1 60,000 40,000 2 50,000 55,000 3 60,000 90,000 4 55,000 120,000 5 50,000 135,000 a. Calculate the payback period whitout PV for both projects. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 8,732.16) b. Calculate the NPV for both projects. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 8,732.16)c. Which project, if any, should the company accept? just write the letter.5. Find the answer to AB and C1. Kenny, Inc. has identified the following two mutually exclusive projects. Project A -$25,000 20,000 5,000 3,000 10,000 Considering 10% required return for both projects. Project B -$28,000 7,000 1,000 -2,000 30,000 Year 2 3 a. Calculate the NPV for each project, which one is more profitable? Why? b. If the payback cut-offis four years, which project should be accepted? Why? c. If the Internal Rate of Return (IRR) of projects A and B are 10% and 12% respectfully, which project would you choose? Why? d. Considering 10% required return, and applying profitability index criteria which investment would you choose? Why? e. After applying the last four investment criteria, which project should be chosen for investment and why? 2. The Rolston Co. is growing quickly. Dividends are expected to grow at the 20% rate for the next three years, with the growth rate falling off to a constant 10% thereafter. If the company just paid a $3 dividend and the required return is 12%, what is the current…