Please correct answer and don't use hand rating Question 7What is the project value from the sensitivity analysis using the pessimistic price/unit?Present the answer in millions of $ and round your answer to the nearest 0.01 (so if youranswer is $5,511,000, answer 5.51)Question 8Show your work for the EBIT step calculation for the question above (for partial credit only):Show your work for the NPV step calculation for the question above (for partial credit only):

For Question 7, the project value based on the sensitivity analysis using the pessimistic price/unit…

Answered: Question 7 What is the project value…

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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Construct NPV profiles for Projects A and B. Round your answers to the nearest cent. Do not round your intermediate calculations. Negative value should be indicated by a minus sign. Discount Rate NPV Project A NPV Project B 0% $ $ 5 $ $ 10 $ $ 12 $ $ 15 $ $ 18.1 $ $ 23.01 $ $ The exel sheet is down below for the entirre question! Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to two decimal places. Do not round your intermediate calculations. % What is each project's MIRR at a WACC of 18%? Round your answer to two decimal places. Do not round your intermediate calculations. Project A: % Project Acceptance: WACC 13.00% Accept #N/A WACC 18.00% NPVA $2.66 NPVB $53.19 Accept #N/A NPV Profiles:…
Use the NPV method to determine whether Kyler Products should invest in the following projects: • Project A costs $275,000 and offers seven annual net cash inflows of $58,000. Kyler Products requires an annual return of 12% on projects like A. • Project B costs $390,000 and offers ten annual net cash inflows of $70,000. Kyler Products demands an annual return of 14% on investments of this nature. (Click the icon to view the present value annuity table.) (Click the icon to view the present value table.) F (Click the icon to view the future value table.) (Click the icon to view the future value annuity table.) Requirement What is the NPV of each project? What is the maximum acceptable price to pay for each project? C Calculate the NPV of each project. (Round your answers to the nearest whole dollar. Use parentheses or a minus sign for negative net present values.) The NPV of Project A is
Answer the given question with a proper explanation and step-by-step solution. Please provide the answer using the math tool otherwise I give the downvote.
EVALUATION o Given the following mutually-exclusive alternatives and a Minimum Attractive Rate of Return (MARR) of 7%, which should be chosen? o Solve as PV, FV and AW (3 separate analyses for each Design) and show which Design gets chosen in each. SHOW YOUR WORK (including cash flow diagram) with tool formulas, not tables at this time to ensure you're understanding the concepts. Year 0 1 23 4 5 Total Design A ($2500) $0 $0 $0 $0 $3100 $600 Design B ($2700) $650 $650 $650 $650 $700 $600 Design C ($3000) $250 $500 $750 $1000 $1250 $750
Observe the graph below and identify the internal rate of return. Assume that the discount rate is 8%. What is the net present value of the project? Briefly explain if the project is viable or not? NPV 50000 40000 30000 20000 10000 4 10 12 14 16 18 20 22 24 • 26 28 -10000 discount rate Edit View Insert Format Tools Table
Just need b-1, d-1, and e-1 answered.
Explain well with proper answer.
2
3) could you use the Figure below that shows the net present value profile of two projects Y and W to answer the following questions: What is the internal rate of return on project Y? Determine the “approximate” discount rate at which you would be indifferent between the two projects Find the “approximate” net present value of project W when the discount rate is 4%.
d. 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.) Using excel how to I find the PI for this question?
A2. (PaybackandNPV)Threeprojectshavethecashflowsgivenhere.Thecostofcapitalis10%. a. Calculate the paybacks for all three projects. Rank the projects from best to worst based on their paybacks. Calculate the NPVs for all three projects. Rank the projects from best to worst based on their NPVs c. Why are these two sets of rankings different? YEAR 0 1 2 3 4 5Project 1 −10 4 3 2 1 5 Project 2 −10 1 2 3 4 5 Project 3 −10 4 3 2 1 10

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