rear 0 -$ 29,200 1 14,000 Lasn How (A) Lasn row (5) -$ 29,200 4,400 2 12,500 3 9,300 4 5,200 9,900 15,400 17,000 a-1. What is the IRR for each of these projects? (Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Project A Project B 19.02 % 17.68 % 2 Using the IRR decision rule, which project should the company accept? Project A O Project B 3. Is this decision necessarily correct? O Yes No b- If the required return is 10 percent, what is the NPV for each of these projects? (Do 1. not round Intermediate calculations and round your answers to 2 decimal places, eg. 32.16) Project A Project B b Which project will the company choose if it applies the NPV decision rule? O Project A O Project B c. At what discount rate would the company be indifferent between these two projects? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Discount rate
rear 0 -$ 29,200 1 14,000 Lasn How (A) Lasn row (5) -$ 29,200 4,400 2 12,500 3 9,300 4 5,200 9,900 15,400 17,000 a-1. What is the IRR for each of these projects? (Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Project A Project B 19.02 % 17.68 % 2 Using the IRR decision rule, which project should the company accept? Project A O Project B 3. Is this decision necessarily correct? O Yes No b- If the required return is 10 percent, what is the NPV for each of these projects? (Do 1. not round Intermediate calculations and round your answers to 2 decimal places, eg. 32.16) Project A Project B b Which project will the company choose if it applies the NPV decision rule? O Project A O Project B c. At what discount rate would the company be indifferent between these two projects? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Discount 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
Related questions
Question
am. 176.
Transcribed Image Text:rear
0
-$ 29,200
1
14,000
Lasn How (A)
Lasn row (5)
-$ 29,200
4,400
2
12,500
3
9,300
4
5,200
9,900
15,400
17,000
a-1. What is the IRR for each of these projects? (Do not round Intermediate calculations
and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Project A
Project B
19.02 %
17.68 %
2 Using the IRR decision rule, which project should the company accept?
Project A
O Project B
3.
Is this decision necessarily correct?
O Yes
No
b- If the required return is 10 percent, what is the NPV for each of these projects? (Do
1. not round Intermediate calculations and round your answers to 2 decimal places,
eg. 32.16)
Project A
Project B
b
Which project will the company choose if it applies the NPV decision rule?
O Project A
O Project B
c. At what discount rate would the company be indifferent between these two projects?
(Do not round Intermediate calculations and enter your answer as a percent
rounded to 2 decimal places, e.g., 32.16.)
Discount rate
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