Calculate the NPV for each project and determine which project should be accepted. Project A Project...

Calculate the NPV for each project and determine which project should be accepted. Project A Project B Project C Project D Initial Outlay (105,000.00) (99,000.00) (110,000.00) (85,000.00) Inflow year 1 53,000.00 51,000.00 25,000.00 45,000.00 Inflow year 2 50,000.00 47,000.00 55,000.00 50,000.00 Inflow year 3 48,000.00 41,000.00 15,000.00 30,000.00 Inflow year 4 30,000.00 52,000.00 21,000.00 62,000.00 Inflow year 5 35,000.00 40,000.00 35,000.00 68,000.00 Rate 7% 10% 13% 18% NPV = $75,228.32 $77,364.07 -$2,531.00 $69,006.08 Answer: Project B How to show work in excell

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Calculate the NPV for each project and determine which project should be accepted. Project A Project...

Calculate the NPV for each project and determine which project should be accepted. Project A Project B Project C Project D Inital Outlay (105,000.000) (99,000.00) (110,000.00) (85,000.00) Inflow year 1 53,000.00 51,000.00 25,000.00 45,000.00 Inflow year 2 50,000.00 47,000.00 55,000.00 50,000.00 Inflow year 3 48,000.00 41,000.00 15,000.00 30,000.00 Inflow year 4 30,000.00 52,000.00 21,000.00 62,000.00 Inflow year 5 35,000.00 40,000.00 35,000.00 68,000.00 Rate 7% 10% 13% 18% Your company is considering three independent projects. Given the following cash flow information,...

Calculate the following problems using Microsoft® Excel®: Calculate the NPV for each project and determine which project should...

Calculate the following problems using Microsoft® Excel®: Calculate the NPV for each project and determine which project should be accepted. Project A Project B Project C Project D Inital Outlay (105,000.000) (99,000.00) (110,000.00) (85,000.00) Inflow year 1 53,000.00 51,000.00 25,000.00 45,000.00 Inflow year 2 50,000.00 47,000.00 55,000.00 50,000.00 Inflow year 3 48,000.00 41,000.00 15,000.00 30,000.00 Inflow year 4 30,000.00 52,000.00 21,000.00 62,000.00 Inflow year 5 35,000.00 40,000.00 35,000.00 68,000.00 Rate 7% 10% 13% 18% Your company is considering three independent projects. Given...

g. Determine the PI for each of these projects. Should either project be accepted? PROJECT A...

g. Determine the PI for each of these projects. Should either project be accepted? PROJECT A PROJECT B Initial outlay -110,000 -110,000 Inflow year 1 10,000 40,000 Inflow year 2 30,000 40,000 Inflow year 3 40,000 40,000 Inflow year 4 60,000 40,000 Inflow year 5 80,000 40,000 g. What is the PI for project A? nothing (Round to three decimal places.) Caledonia should accept project A because its PI is greater than or equal to 1.00. (Select from the drop-down...

Calculate the NPV for the following project. The company wants to determine whether it should expand...

Calculate the NPV for the following project. The company wants to determine whether it should expand and purchase a new piece of equipment (20% CCA Rate). The equipment will cost $100,000, have a useful life of 20 years, and have a projected salvage value of $5,000. By purchasing the equipment, the company can increase its net revenues by $7,500 per year. Using a discount rate of 10% and a tax rate of 30%, should the company purchase the equipment?

Nokia has two Projects. Project A and Project B. Which project should be accepted under each...

Nokia has two Projects. Project A and Project B. Which project should be accepted under each measurement. Project A Project B NPV ($) 2578 3842 IRR ($) 12 14 MIRR (%) 10 11 PI 1.2 1.5 Payback Period (years) 3 3.8 Discounted Payback Pd (Years) 4.2 4.8 Nokia's cost of capital is 8%. Its critical payback period is 2 years and the critical discount payback period is 3 years NPV - (Project A be accepted, Project B be accepted, or...

1. Calculate the net present value (NPV) for both projects, anddetermine which project should be...

Use the following information to answer the next three questions. Consider the cash flows from two mutually exclusive projects: YearProject AProject B0-$420,000-$420,0001$140,000$400,0002$230,000$110,0003$331,000$140,000The appropriate discount rate is 8.5%.1. Calculate the net present value (NPV) for both projects, and determine which project should be accepted based on NPV. Round both NPVs to the nearest dollar.2. Calculate the internal rate of return (IRR) for both projects, and determine which project should be accepted based on IRR.3. Calculate the net present value (NPV) for both projects...

1. NPV According to the text, the NPV rule states that "An investment should be accepted...

1. NPV According to the text, the NPV rule states that "An investment should be accepted if the NPV is positive and rejected if it is negative." What does an NPV of zero mean? If you were a decision-maker faced with a project with a zero NPV (or very close to zero) what would you do? Why? 2. FORECASTING ERROR (RISK) What is a "forecasting error"? Why is it important to the analysis of capital expenditure projects?

For each project, calculate the NPV, IRR, profitability index (PI) and the payback period. For each...

For each project, calculate the NPV, IRR, profitability index (PI) and the payback period. For each capital budgeting decision tool, indicate if the project should be accepted or rejected, assuming that each project is independent of the others. Important Note: The venture capital folks have a firm maximum payback period of four years. Risk free rate = 1.10%, MRP = 9.5%, Required return = 14.40% Yes excel is fine Expected cash flows for the four potential projects that Avalon is...

. For each project, calculate the NPV, IRR, profitability index (PI) and the payback period. For...

. For each project, calculate the NPV, IRR, profitability index (PI) and the payback period. For each capital budgeting decision tool, indicate if the project should be accepted or rejected, assuming that each project is independent of the others. Important Note: The venture capital folks have a firm maximum payback period of four years. Project A= Required rate of Return= 16.30% Project B= R= 12.50% Project C= R= 15.35% Project D= R= 17.25% Expected cash flows for the four...

Calculate the IRR, the NPV, and the MIRR for each project, and indicate the correct accept/reject decision for each.

11. Problem 10-08 (NPVs, IRRs, and MIRRs for Independent Projects)NPVs, IRRs, and MIRRs for Independent ProjectsEdelman Engineering is considering including two pieces of equipment, a truck and an overhead pulley system, in this year's capital budget. The projects are independent. The cash outlay for the truck is $18,000, and that for the pulley system is $22,000. The firm's cost of capital is 14%. After-tax cash flows, including depreciation, are as follows:YearTruckPulley1$5,100$7,50025,1007,50035,1007,50045,1007,50055,1007,500Calculate the IRR, the NPV, and the MIRR for each project,...

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Calculate the NPV for each project and determine which project should be accepted. Project A Project...

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