Year Cash Flow (A) Cash Flow (B) -S -$ 0 360,000 35,000 55,000 3 55,000 4 430,000 1234 2 45,000 23,000 21,000 18,500 13,600 Whichever project you choose, if any, you require a return of 14 percent on your Investment

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
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Just need b-1, d-1, and e-1 answered. 

Year Cash Flow (A) Cash Flow (B)
-S
-$
0
-N3A
2
4
Whichever project you choose, if any, you require a return of 14 percent on your
Investment.
VITORL the
Proie
360,000
35,000
55,000
55,000
430,000
PTVJOG
45,000
23,000
21,000
18,500
13,600
Che womezena 2 Shapem
penou
z
Project A
Project B
If you apply the payback entenon, which investment will you choose?
round
b- What is the discounted payback perlod for each project? (Do not round Intermediate
1. calculations and round your answers to 2 decimal places, e.g., 32.16.)
Answer is not complete.
Discounted payback
period
3.98 years
years
Mate
Transcribed Image Text:Year Cash Flow (A) Cash Flow (B) -S -$ 0 -N3A 2 4 Whichever project you choose, if any, you require a return of 14 percent on your Investment. VITORL the Proie 360,000 35,000 55,000 55,000 430,000 PTVJOG 45,000 23,000 21,000 18,500 13,600 Che womezena 2 Shapem penou z Project A Project B If you apply the payback entenon, which investment will you choose? round b- What is the discounted payback perlod for each project? (Do not round Intermediate 1. calculations and round your answers to 2 decimal places, e.g., 32.16.) Answer is not complete. Discounted payback period 3.98 years years Mate
d- What is the IRR for each project? (Do not round Intermediate calculations and enter
1. your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Project A
Project B
Answer is not complete.
IRR
2. you apply the m
Project A
Project B
Project
Project
%
%
e-1. What is the profitability Index for each project? (Do not round Intermediate
calculations and round your answers to 3 decimal places, e.g., 32.161.)
Answer is not complete.
Profitability
index
wwwill you choose?
1.013
Transcribed Image Text:d- What is the IRR for each project? (Do not round Intermediate calculations and enter 1. your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Project A Project B Answer is not complete. IRR 2. you apply the m Project A Project B Project Project % % e-1. What is the profitability Index for each project? (Do not round Intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) Answer is not complete. Profitability index wwwill you choose? 1.013
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