Describe whether the firm shouldaccept the independent projects described, and explain the reason behind it, assume that the firm’scost of capital is 10% and the estimated internal rate of return (IRR) of the project is 11%.

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Answer 1

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Chapter 12, Problem 11Q

a.

To determine

Describe whether the firm shouldaccept the independent projects described, and explain the reason behind it, assume that the firm’scost of capital is 10% and the estimated internal rate of return (IRR) of the project is 11%.

b.

To determine

Describe whether the firm should accept the independent projects described, and explain the reason behind it, assume that the capital project requires a $150,000 initial investment and “the firm’s cost of capital is 10% (after-tax),and the present value of the expected after-tax cash inflows from the project is $148,000”.

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Answer 2

Question

Chapter 12, Problem 11Q

a.

To determine

Describe whether the firm shouldaccept the independent projects described, and explain the reason behind it, assume that the firm’scost of capital is 10% and the estimated internal rate of return (IRR) of the project is 11%.

b.

To determine

Describe whether the firm should accept the independent projects described, and explain the reason behind it, assume that the capital project requires a $150,000 initial investment and “the firm’s cost of capital is 10% (after-tax),and the present value of the expected after-tax cash inflows from the project is $148,000”.

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Answer 3

Question

Chapter 12, Problem 11Q

a.

To determine

Describe whether the firm shouldaccept the independent projects described, and explain the reason behind it, assume that the firm’scost of capital is 10% and the estimated internal rate of return (IRR) of the project is 11%.

b.

To determine

Describe whether the firm should accept the independent projects described, and explain the reason behind it, assume that the capital project requires a $150,000 initial investment and “the firm’s cost of capital is 10% (after-tax),and the present value of the expected after-tax cash inflows from the project is $148,000”.

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Answer 4

Question

Chapter 12, Problem 11Q

a.

To determine

Describe whether the firm shouldaccept the independent projects described, and explain the reason behind it, assume that the firm’scost of capital is 10% and the estimated internal rate of return (IRR) of the project is 11%.

b.

To determine

Describe whether the firm should accept the independent projects described, and explain the reason behind it, assume that the capital project requires a $150,000 initial investment and “the firm’s cost of capital is 10% (after-tax),and the present value of the expected after-tax cash inflows from the project is $148,000”.

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Answer 5

Chapter 12, Problem 11Q

a.

To determine

Describe whether the firm shouldaccept the independent projects described, and explain the reason behind it, assume that the firm’scost of capital is 10% and the estimated internal rate of return (IRR) of the project is 11%.

b.

To determine

Describe whether the firm should accept the independent projects described, and explain the reason behind it, assume that the capital project requires a $150,000 initial investment and “the firm’s cost of capital is 10% (after-tax),and the present value of the expected after-tax cash inflows from the project is $148,000”.

Answer 6

Chapter 12, Problem 11Q

a.

To determine

Describe whether the firm shouldaccept the independent projects described, and explain the reason behind it, assume that the firm’scost of capital is 10% and the estimated internal rate of return (IRR) of the project is 11%.

Answer 7

Chapter 12, Problem 11Q

a.

To determine

Describe whether the firm shouldaccept the independent projects described, and explain the reason behind it, assume that the firm’scost of capital is 10% and the estimated internal rate of return (IRR) of the project is 11%.

Answer 8

b.

To determine

Describe whether the firm should accept the independent projects described, and explain the reason behind it, assume that the capital project requires a $150,000 initial investment and “the firm’s cost of capital is 10% (after-tax),and the present value of the expected after-tax cash inflows from the project is $148,000”.

Answer 9

b.

To determine

Describe whether the firm should accept the independent projects described, and explain the reason behind it, assume that the capital project requires a $150,000 initial investment and “the firm’s cost of capital is 10% (after-tax),and the present value of the expected after-tax cash inflows from the project is $148,000”.

Answer 10

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Answer 11

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Answer 12

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Answer 13

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Describe whether the firm shouldaccept the independent projects described, and explain the reason behind it, assume that the firm’scost of capital is 10% and the estimated internal rate of return (IRR) of the project is 11%.

Describe whether the firm shouldaccept the independent projects described, and explain the reason behind it, assume that the firm’scost of capital is 10% and the estimated internal rate of return (IRR) of the project is 11%.

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