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- If the net present value (NPV) of project A is + $200, and that of project B is + $80, then the net present value of the combined project is: +$80 0 +$280 +$200What is the net present value of a project with the following cash flows if the discount rate is 15 percent? Year 0: Cash Flow 5-48,000, Year 1: Cash flow = $15,600, Year 2: Cash flow = $28,900, Year 3: Cash flow = 515, 200 Seleccione una: A. -$1,618.48 B. $1,035.24 C. S9.593.19 D $2,687.98 E. $1,044.16You are given the following cash flow for a project, and told that PW(8%) = $8,300 for this project. What is the value of the unknown payment X for the second and third periods? n Cash Flow 0 -$36,000 1 $0 2 $X 3 $X O Cannot be determined. O $24,842.08 O $26,829.44 O $5,026.74
- Mutually exclusive projects and NPV you have been assigned the task of evaluating two mutually exclusive projects with the following projected cash flows. year. Project A (cash flow) Project B 0 $(102,000) $(102,000) 1 31,000 0 2 31,000 0 3 31,000 0 4 31,000 0 5 31,000 240,000 if the appropriate discount rate on these is 11 percent, which would be chosen and why? the NPV of project A is $The profitability analysis of three projects is provided below: Project A Project B Project C NPV $10,000 $5,000 - $1,000 IRR 10% 15% 15% WACC 8% 12% 16% If these projects were independent, which project(s) would be accepted? Why? If these projects were mutually exclusive, which project(s) would be accepted? Why?"Consider the following two mutually-exclusive alternatives: Project Alternatives n Project A1 Cash Flows Project A2 Cash Flows $14,000 -$17,000 +$21,000 1 + $4,000 2+ $4,000 +$12,000 If MARR=15% and assuming indefinite required service and repeatability, use the incremental NPV and IRR analyses in parts (a) and (b) of the problem, respectively, to choose the project in part (c). Please note that project alternatives A1 and A2 have different lives, namely three years for A1 and one year for A2. The alternatives should be compared over the same period, so project A2 will have to be repeated twice." (a) The Net Present Value of the incremental investment is: (b) The Internal Rate of Return of the incremental investment is: (c) We should choose project alternative: + Note: Please enter your answers to two decimal places. If using the interest factor method, apply the value of the factor as presented in the table or spreadsheet (with all four decimal places).
- The following information is available on two mutually exclusive projects. Project Year 0 Year 1 Year 2 Year 3 Year 4 A -$700 $200 $300 $400 $500 B -$700 $600 $300 $200 $100 If the required rate of return is 10%, which project should be selected using the net present value (NPV) method? Group of answer choices A BLiving Colour Company has a project available with the following cash flows: Year 0 1 2 Cash Flow -$ 32,830 8,390 10,130 14,540 16,170 11,180 If the required return for the project is 9.3 percent, what is the project's NPV? sin 4 5 Multiple Choice O $27,580.00 O $5,790.94 O $14,037.83 O $12,958.00 $14,809.14Compute the NPV of the project below assuming that the cost of capital is 8%: Year 0 1 2 3 FCF -85,000 55,000 55,000 68,000
- Suppose now that we have a multi-period project. The project costs $100,000 Perlodi Perlod2 Perlod3 CF1 pl CF2 pl CF3 pl 23797.53 0.4 33226.74 0.3 24246.54 0.1 47595.06 0.5 66453.48 0.6 48493.08 0.7 71392.59 0.1 99680.22 0.1 72739.62 0.2 1/ Find the E(CF1), E(CF2) and E(CF3) 2/ Find the V(CF1), V(CF2) and V(CF3) 3/ IF the requlred rate of return Is 9% then 3-1 Find E(NPV) 3-2 Find V(NPV) if we consider Independence Between the Cash Flows 3-3 Find the o(NPV) if we consider total dependence Between the Cash Flows. 3-4 Find the probability that the NPV of the project is less than to zero the if we consider total dependence Between the Cash FlowsUse the data below for problems 6 to 10. YearProj YProj Z 0($420,000)($420,000) 1400,000182,000 2185,000156,000 3—146,000 4—175,000 The projects provide a necessary service, so whichever one is selected is expected to be repeated into the foreseeable future. Both projects have an 11% cost of capital. 6. What is each project’s initial NPV without replication? 7. What is each project’s equivalent annual annuity? 8. Now apply the replacement chain approach to determine the shorter projects’ extended NPV. Which project should be chosen? 9. Now assume that the cost to replicate Project Y in 2 years will increase to $600,000 because of inflationary pressures. How should the analysis be handled now, and which project should be chosen?