Stenson, Inc., imposes a payback cutoff of three years for its international investmentprojects. Assume the company has the following two projects available.Year Cash Flow A Cash Flow BO -$60,000 -$ 105,00024,50032,00026,50012,50026,50031,50027,500235,000What is the payback period for each project? (Do not round intermediate calculationsand round your answers to 2 decimal places, e.g., 32.16.)Project AProject Byearsyears-23 4

Year Cash flow A Cash flow B 0 -60000 -105000 1 24500 26500 2 32000 31500 3 26500 27500 4…

Stenson, Ic., imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available. Year Cash Flow A Cash Flow B -$60,000 -$ 105,000 24,500 32,000 26,500 12,500 26,500 31,500 27,500 235,000 What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.., 32.16.) Project A Project B years years 01234

Stenson, Ic., imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available. Year Cash Flow A Cash Flow B -$60,000 -$ 105,000 24,500 32,000 26,500 12,500 26,500 31,500 27,500 235,000 What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.., 32.16.) Project A Project B years years 01234

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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A project that provides annual cash flows of $11322 for eight years costs $80145 today. At what discount rate would you be indifferent between accepting the project and rejecting it? (Enter your answer as a percentage, omit the "%" sign in your response, and round your answer to 2 decimal places. For example, 0.12345 or 12.345% should be entered as 12.35.)
answer need..
Management of Wildhorse, Inc., is considering switching to a new production technology. The cost of the required equipment will be $4,000,000. The discount rate is 11 percent. The cash flows that management expects the new technology to generate are as follows. Years 1-2 3-5 6-9 CF 0 $750,000 $1,450,000 a. Compute the payback and discounted payback periods for the project. (Round answers to 2 decimal places, e.g. 15.25.) The payback for the project is The NPV of the project is $ years, and the discounted payback period is b. What is the NPV for the project? Should the firm go ahead with the project? (Enter negative amounts using negative sign e.g. -45.25. Do not round discount factors. Round intermediate calculations to O decimal places, e.g. 1,525 and final answer to O decimal places, e.g. 5,125.) The IRR of the project is , and using the NPV rule the project should be c. What is the IRR, and what would be the decision based on the IRR? (Round answer to 3 decimal places, e.g.…
Kara, Incorporated, imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available. Year Cash Flow (A) -$ 59,000 Cash Flow (B) 01234 24,000 31,400 26,000 12,000 -$ 104,000 26,000 31,000 28,000 236,000 a. What is the payback period for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. Which, if either, of the projects should the company accept? a. Project A years Project B years b. Project acceptance Accept Project A and reject Project B
need both
Andouille Spices, Incorporated, has the following mutually exclusive projects available. The company has historically used a three-year cutoff for projects. The required return is 13 percent. Year Project F 0 -$ 132,000 1 61,500 2 48,500 3 58,500 4 53,500 5 48,500 Project G -$ 202,000 41,500 56,500 88,500 118,500 133,500 a. Calculate the payback period for both projects. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. Calculate the NPV for both projects. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. c. Which project, if any, should the company accept? a. Project F Project G b. Project F Project G C. years years
Pls helps me all parts or kindly skip
provide. Answer please
The Klingon Sausage Corporation is trying to choose between the following two projects: Year Cash Flow (Project I) Cash Flow (Project II) 0 -$363,000 -$165,000 1 184,800 99,600 2 184,800 99,600 3 184,800 99,600 The discount rate of both projects is 8%. Klingon’s manager believes the company has sufficient resources so that the two projects should not be treated as mutually exclusive. Which project should be taken based on the profitability index? A. Project I should be accepted and project II should be rejected. B. None of the projects should be accepted. C. Project I should be rejected and project II should be accepted. D. Both projects should be accepted.
A project costs $2,620 up front (year 0), and its net cash flows are expected to be +$856 per year for 8 years (with the first cash flow occurring one year from today). If the WACC is 12%, the project's NPV is $_________. Do not round any intermediate work. Round your *final* answer to 2 decimal places (example: 12.34567 = 12.35). Do not enter the $ sign. Include a negative sign if your answer is negative.
.

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