Use the following data to complete the QUIZ: YEAR 0 1 2 3 4 WACC = 12.0000% Expected Net Cash Flow Project X Project Y <$12,000> <$12,000> 4,500 8,000 4,500 4,100 4,500 3,000 4,500 2,000
Use the following data to complete the QUIZ: YEAR 0 1 2 3 4 WACC = 12.0000% Expected Net Cash Flow Project X Project Y <$12,000> <$12,000> 4,500 8,000 4,500 4,100 4,500 3,000 4,500 2,000
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
PRINTED NAME _____________________________________________
Project X Project Y
PB (payback)
DPB (Discounted Payback)
NPV $
PI
IRR %
MIRR%
EAA (NUS) $
CROSSOVER RATE %
NPV $
(using crossover rate)
If the projects are INDEPENDENT, which would you choose? WHY?
_____________________________________________________________
If the projects are MUTUALLY EXCLUSIVE, which would you choose? WHY?
_____________________________________________________________
When you would be INDIFFERENT between the projects? WHY?
_____________________________________________________________
SIGNATURE _____________________________________________________
Transcribed Image Text:Use the following data to complete the QUIZ:
YEAR
0
1
2
3
4
WACC = 12.0000%
Expected Net Cash Flow
Project X
<$12,000>
4,500
4,500
4,500
4,500
Project Y
<$12,000>
8,000
4,100
3,000
2,000
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