Your company has a project avallable with the following cash flows: TT Year Cash Flow -$80,700 21,700 25,400 31,200 26,200 20,200 4 5 If the required return iIs 15 percent, should the project be accepted based on the IRR? Multiple Cholce No, because the IRR IS 16.51 percent. Yes, because the IRR IS 17.88 percent. Yes, because the IRR Is 17.19 percent. Yes, because the IRR Is 16.51 percent. No, because the IRR Is 17.88 percent.

Your company has a project avallable with the following cash flows: TT Year Cash Flow -$80,700 21,700 25,400 31,200 26,200 20,200 4 5 If the required return iIs 15 percent, should the project be accepted based on the IRR? Multiple Cholce No, because the IRR IS 16.51 percent. Yes, because the IRR IS 17.88 percent. Yes, because the IRR Is 17.19 percent. Yes, because the IRR Is 16.51 percent. No, because the IRR Is 17.88 percent.

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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Braun Industries is considering an investment project that has the following cash flows: Year 0 1 2 3 Project Cash Flows -$634 $374 $309 $327 The company's WACC is 13.3 percent. What is the project's payback, internal rate of return (IRR), and net present value (NPV)? Should this project be accepted? O 1.54 years; 31.31% ; $191.64; No O 1.84 years; 28.31% ; $161.64; Yes O 1.64 years; 30.31% ; $181.64; Yes O 1.74 years; 29.31% ; $171.64; Yes O 1.54 years; 31.31% ; $191.64; Yes
es A project has the following cash flows: Year Cash Flow 0 -$ 17,200 1 7,900 2 9,200 3 7,700 a. What is the NPV at a discount rate of zero percent? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What is the NPV at a discount rate of 12 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the NPV at a discount rate of 22 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What is the NPV at a discount rate of 28 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. NPV b. NPV c. NPV d. NPV
Barry Inc. is considering a project that has the following cash flow and WACC data. What is the project's MIRR?WACC = 11.55% Year 0 1 2 3 4 5 CFs -$46,900 10,800 21,600 32,400 43,200 54,000 Group of answer choices 25.42% 31.53% 32.18% 39.58% 38.29%
Hi there please help me ? it's easy please, verify by double checking if it's correct ( by eyes) only
5. A firm evaluates all of its projects by applying the NPV rule. A project under consideration has the following cash flows: Year 0 1 2 3 Cash flow $ -34,000 16,000 18,000 15,000 If the required return is 12 percent, what is the NPV for this project? Should the firm accept the project? Explain. What is the NPV for this project if the required return is 35 percent? Should the firm accept the project? Explain. Round your answer to 2 decimal places.
Suppose a project has the following cashflows and the discount rate (required return) is 12%. t 0 1 2 3 4 5 $ Cash flow (30,000) 8,000 10,000 12,000 16,000 12,000 The project's discounted cumulative cashflow turns positive between year 3 and 4, to be precise it is 3.59 The project's discounted cumulative cashflow turns positive between year 3 and 4, to be precise it is 3.62 The project's discounted cumulative cashflow turns positive between year 3 and 4, to be precise it is 3.12 The project's discounted cumulative cashflow turns positive between year 4 and 5, to be precise it is 4.22
The following table gives the cash flows for Project A and Project B: Year Project A Project B lo -3000 |-4000 1 1000 1500 2 1000 1800 3 2500 2000 If the discount rate is 15%, which project should we invest in? Project A Project B Both A and B Data insufficient.
A firm evaluates all of its projects by using the NPV decision rule. Year Cash Flow 0 −$ 28,000 1 24,000 2 13,000 3 6,000 a. At a required return of 28 percent, what is the NPV for this project? b. At a required return of 35 percent, what is the NPV for this project?
Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown below. The required rate of return on projects of both of their risk class is 8 percent, and that the maximum allowable payback and discounted payback statistic for the projects are 2 and 3 years, respectively. Time 1 2 3 Project A Cash Flow Project B Cash Flow -25,000 15,000 35,000 6,000 -35,000 15,000 25,000 55,000 Use the NPV decision rule to evaluate these projects; which one(s) should be accepted or rejected? Multiple Choice Accept A, reject B Accept neither A nor B Accept both A and B Reject A, accept B
The table bellow shows the cash flow for an engineering project, if the reinvestment rate of return ɛ is 6% per year, the external rate of rate (EER) is : EOY Cash flow $ |-13000 4 -4000 5 to 10 6000
You are considering a project that has the following cash flow data. What is the project's payback? Year 0 1 2 3 Cash Flow -900 350 450 550 Group of answer choices 2.40 1.53 1.96 2.18 2.62
A project has the following cash flows: C * 0 = - 100000; C 1 = 50000 C * 2 = 150000 C 3 = 100000 . If the discount rate changes from 12 percent to 15 percent, what is the CHANGE in the NPV of the project ( approximately)? Multiple Choice 12,750 increase 12,750 decrease 14,240 increase 14,240 decrease

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