n investment of $62,000. No other cash outflows would be involved. Th he project is closest to (Ignore income taxes.):
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- A project has the following cash flows: as a positive value. Do not round intermediate calculations. Round your answer to the nearest cent. $A project does not necessarily have a unique IRR.(Refer to the previous problem for more informationon IRR.) Show that a project with the following cashflows has two IRRs: year 1, 2$20; year 2, $82; year3, 2$60; year 4, $2. (Note: It can be shown that ifthe cash flow of a project changes sign only once, theproject is guaranteed to have a unique IRR.)Marielle Machinery Works forecasts the following cash flows for a project under consideration. It uses the Internal rate of return rule to accept or reject projects. C₁ Co -$ 10,000 C₂ +$ 7,500 IRR a. What is the project's IRR? Note: Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. C3 +$ 8,500 22.41 % b. Should this project be accepted if the required return is 12%? Yes No
- Please do not provide solution in image format and give proper explanation.Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows. a. If Project A has a higher IRR than Project B, then Project A must also have a higher NPV. b. If a project has normal cash flows and its IRR exceeds its cost of capital, then the project's NPV must be positive. c. The IRR calculation implicitly assumes that all cash flows are reinvested at the cost of capital. d. If Project A has a higher IRR than Project B, then Project A must have the lower NPV. e. The IRR calculation implicitly assumes that cash flows are withdrawn from the business rather than being reinvested in the business.Datta Computer Systems is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC (and even negative), in which case it will be rejected. Year Cash flows O 7.93% 8.31% 9.46% 9.94% 9.55% -$1,175 $450 $470 دیا $490
- please answer both questions correctly: 10. A project has the following cash flows: Year Cash Flow 0 $ 43,500 1 −22,500 2 −33,500 a. What is the IRR for this project? (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 this project, if the required return is 12 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the NPV of the project if the required return is 0 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What is the NPV of the project if the required return is 24 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) 11. Anderson International Limited is…45. Which of the following statements is CORRECT? a. The definition of "normal" cash flows is that the cash flow stream has one or more negative cash flows followed by a stream of positive cash flows and then one negative cash flow at the end of the project's life. b. If a project has "normal" cash flows, then it will have exactly two real IRRs. c. If a project has "normal" cash flows, then it can have only one real IRR, whereas a project with "nonnormal" cash flows might have more than one real IRR. d. If a project has "normal" cash flows, then its IRR must be positive. e. If a project has "normal" cash flows, then its MIRR must be positive.Union pacific is considering a project that has the following cash flow and WACC data. What is the projects MIRR? Note that a projects MIRR can be less than the WACC (and negative), in which case be rejected. WACC: 9.50% Year 0 1 2 3 Cash flows -1,000, 450, 450, 450
- A company is considering three alternative investment projects with different net cash flows. The present value of net cash flows is calculated using Excel and the results follow. Potential Projects Present value of net cash flows (excluding initial investment) Initial investment Project A $ 11,226 (10,000) Project B $ 10,568 (10,000) a. Compute the net present value of each project. b. If the company accepts all positive net present value projects, which of these will it accept? c. If the company can choose only one project, which will it choose on the basis of net present value? Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the net present value of each project. Potential Projects Project A Project B Project C Present value of net cash flows Initial investment Net present value $ $ $Kiley Electronics is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IRR can be less than the cost of capital (and even negative), in which case it will be rejected. r: 10.00% Year 0 1 2 3 Cash flows −$1,000 $550 $560 $570This is a multiple choice question.
