The following economical indictors are referring to types of project (A and B). Answer the following points according to these given indictors in the tables. project A:r=8% project B: r=8% year cash flow (CF) year cash flow (CF) 0 -598 0 -384 1 110 1 105 2 170 2 105 3 210 3 95 4 320 118 A) If you are aware that (r%) percentages are various for different reasons to be (10% and 20%). So determine level of NPV during your analysis procedures for whole the mentioned cases of (% r) for each project? B) Which one of the mentioned project are more economically by using concept of IRR and take the range of (% r) between (9% to %25 ) for supporting your answers? 4
The following economical indictors are referring to types of project (A and B). Answer the following points according to these given indictors in the tables. project A:r=8% project B: r=8% year cash flow (CF) year cash flow (CF) 0 -598 0 -384 1 110 1 105 2 170 2 105 3 210 3 95 4 320 118 A) If you are aware that (r%) percentages are various for different reasons to be (10% and 20%). So determine level of NPV during your analysis procedures for whole the mentioned cases of (% r) for each project? B) Which one of the mentioned project are more economically by using concept of IRR and take the range of (% r) between (9% to %25 ) for supporting your answers? 4
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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Transcribed Image Text:The following economical indictors are referring to types of project (A and B). Answer the
following points according to these given indictors in the tables.
project A:r=8%
project B: r=8%
year
cash flow (CF)
year
cash flow (CF)
-598
-384
1
110
1
105
170
105
3
210
3
95
320
4
118
A) If you are aware that( r%) percentages are various for different reasons to be (10% and 20%). So
determine level of NPV during your analysis procedures for whole the mentioned cases of (% r)
for each project?
B) Which one of the mentioned project are more economically by using concept of IRR and take
the range of (% r) between (9% to %25) for supporting your answers?
C) Drawing out all the levels of various of the project for each cases of (r %) which given initially in
point (A) above.
D) Give clear justification about any of the above project more feasible?
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