None QUESTION 16Find the crossover rate with the following information.Required rate of return: 8%Year 0123CFS -$2000 $750 $750 $750 $750CFL -$6,000 $2,500 $2,500 $1,800 $1,50016.25%12.45%O 14.49%O 15.27%

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Answered: QUESTION 16 Find the crossover rate…

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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Find the NPV using 11% discount Year 0-3, Project A, B
Question 8 Find the value of P for which the inflows will equal the outflows. Find the effective rate first. Rate pycd 8% Inflows Year Outflows 0 -P 1 2 3 4 5 6 7 8 9 10 -2P -4P -8P -16P O $3,786 O $4,376 O $5,172 O $5,246 $24,000 $30,000 $36,000 $42,000 $48,000 $54,000
NPV profiles WACC (Dollars in Millions) Plan A Plan B Project NPV Calculations: NPVA NPVB Project IRR Calculations: IRRA IRRB NPV Profiles: Discount Rates 0% 5% 10% 15% 20% 22% 25% 11.00% NPVA $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 0 -$40.00 Formulas #N/A #N/A -$11.00 $2.47 $2.47 $2.47 #N/A #N/A NPVB 1 $6.39 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 2 3 $6.39 $6.39 4 $6.39 $2.47 5 6 7 $6.39 $6.39 $6.39 $2.47 $2.47 8 9 $6.39 $6.39 $2.47 $2.47 $2.47 10 $6.39 $2.47 11 $6.39 12 $6.39 13 $6.39 $2.47 $2.47 $2.47 14 $6.39 15 $6.39 $2.47 $2.47 16 $6.39 $6.39 $2.47 17 39 $2.47
Project A Year -320 0 220 Project B -340 40 2 120 100 m 90 180 1-16% What is the crossover rate? A) 1.83 B) 3.68 ©49.80 D) 1.12 E) 38.59 40 300
Find the value of P for which the inflows will equal the outflows. Find the effective rate first. Rate Year Outflows 0 1 2 3 4 5 678 9 10 -P -2P -4P -8P -16P $1,530 $2,545 $3,269 $3,490 18% pycd Inflows $24,000 $30,000 $36,000 $42,000 $48,000 $54,000
a. Find the FV of $1,000 invested to earn 8% after 5 years. Round your answer to the nearest cent. b. What is the investment's FV at rates of 0%, 4%, and 30% after 0, 1, 2, 3, 4, and 5 years? Round your answers to the nearest cent. Year 0 1 2 1469.32 4 5 Մ S S S S $ 0% $ $ $ $ $ $ LA Interest Rate 4% ŁA LA 30% Choose the correct graph of future value as a function of time and rate. Note: blue line is for 0%, orange line is for 4%, and grey line is for 30%.
What would be the formulas for these?
6) Year Project A Project B Difference 0 -75000 -75000 0 1 26300 24000 2300 2 29500 26900 2600 3 45300 51300 -6000 Crossover rate 14.60% Hi I need help with the following question! Thank you! Are you going to accept project A or project B? Why?
id 1 :uonsenn siu i 29 o Consider the following two projects: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Discount Project C/F Alpha C/F C/F C/F C/F C/F C/F C/F Rate -79 20 25 30 35 40 N/A N/A 12% Beta - 80 25 25 25 25 25 25 25 13% The net present value (NPV) for project alpha is closest to: A. $31 B. $25 OC. $21 D. $38 Click to select your answer. MacE esc D00 O O O 0
solution in excel
Find the rate i. j12 equivalent to j1 = 10.08% ii. equivalent to j4 = 12% iii. j4 equivalent to joo = 9% iv. per month equivalent to 5% per half-year

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QUESTION 16 Find the crossover rate with the following information. Required rate of return: 8% Year 0 1 2 3 CFS -$2000 $750 $750 $750 $750 CFL -$6,000 $2,500 $2,500 $1,800 $1,500 16.25% 12.45% O 14.49% O 15.27%