Your firm has estimated the following cash flows for two mutually exclusive capital investment projects.The firm's required rate of return is 10%.Year Project A Cash Flow Project B Cash Flow-$185,000-$410,000155,000120,000255,000120,000355,000110,000445,000110,00045,00090,000645,00060,000Which of the following statements is true concerning projects A and B?O Project A has a larger NPV than project B.None of these are correct.O Project B is really cool.O Project B has a larger IRR than project A.O Project A has a larger IRR than project B.

Using the IRR and NPV functions in excel

Your firm has estimated the following cash flows for two mutually exclusive capital investment projects. The firm's required rate of return is 10%. Year Project A Cash Flow Project B Cash Flow -$185,000 -$410,000 1 55,000 120,000 2 55,000 120,000 3 55,000 110,000 4 45,000 110,000 45,000 90,000 45,000 60,000 Which of the following statements is true concerning projects A and B? O Project A has a larger NPV than project B. None of these are correct. Project B is really cool. Project B has a larger IRR than project A. O Project A has a larger IRR than project B.

Your firm has estimated the following cash flows for two mutually exclusive capital investment projects. The firm's required rate of return is 10%. Year Project A Cash Flow Project B Cash Flow -$185,000 -$410,000 1 55,000 120,000 2 55,000 120,000 3 55,000 110,000 4 45,000 110,000 45,000 90,000 45,000 60,000 Which of the following statements is true concerning projects A and B? O Project A has a larger NPV than project B. None of these are correct. Project B is really cool. Project B has a larger IRR than project A. O Project A has a larger IRR than project B.

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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Typed and correct answer please. I will rate accordingly
The following are two projects a firm is considering: Project B Cash Flow Year 0 1 2 3 4 $2,939.01 Assuming that the relevant cost of capital for both projects is 11%, you should be able to determine the net present value (NPV) and the internal rate of return (IRR) for both project. Assume now that the firm has capital rationing, but knows that its true reinvestment rate is 20%, while its cost of capital is 11 percent. Given this information, determine the modified net present value (MNPV) for Project B. O $2.479.00 O $2.965.10 O$3.479.89 Project A Cash Flow O $4,084.05 ($10,000.00) ($11,000.00) $3,000.00 $5,000.00 $4,000.00 $4,000 00 $5,000.00 $4,000.00 $2,000.00 $2,000.00
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DEVCON INDUSTRIES LIMITED Income Statement For the years ended Dec. 31, 2018 and 2019 2018 2019 s000's so00's Sales 900000 1125000 Cost of Goods Sold 300000 306600 Gross Profit 600000 818400 Selling and Administrative Expenses 150000 156000 Depreciation Expense 54000 57000 Advertising Expenses 18000 21000 Earnings Before Interest and Taxes Interest Expense 378000 584400 3000 3000 Taxable Income 375000 581400 Taxation (35%) 131250 203490 Net Income 243750 377910 Dividends (40%) 97500 151164 Addition to Retained Earnings 146250 226746 Additional Information Share Price 21 27.3 Ordinary Shares Outstanding 120000000 144000000 DEVCON INDUSTRIES LIMITED Statement of Financial Position As at Dec. 31, 2018 and 2019 2019 s000's ASSETS 2018 LIABILITIES & EQUITY 2018 2019 Current Assets so00's Current Liabilities so00's s000's Inventories 264000 276000 Accounts Payables Notes Payables 138000 114000 Accounts Receivables 294000 330000 150900 132654 Cash and Equivalents 210900 270000 288900 246654…

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