Both projects required rate of return is 10%. Year Project X Project Y 0 -100 -100...

Both projects required rate of return is 10%. Year Project X Project Y 0 -100 -100 1 50 20 2 30 40 3 30 40 4 30 50 5 -10 -9 A) Calculate the NPV both projects. If they are mutually exclusive, which project would you pick? B) Calculate the MIRR of both projects using the combo method and determine which project you would pick based solely on MIRR. C) Calculate the cross-over rate

Expert Solution

jeff jeffy answered 9 months ago

Your division is considering two projects. The required rate of return for both projects is 10%....

Your division is considering two projects. The required rate of return for both projects is 10%. Below are the cash flows of both the projects: Projects Initial investment Year 1 Year 2 Year 3 Year 4 A -$30 $5 $10 $15 $20 B -$30 $20 $10 $8 $6 Calculate the Payback period and discounted payback period. Why are they different? . Calculate the NPV for both the projects Which projects should be accepted? if both the projects are independent....

You are evaluating two projects with the following cash flows: Year Project X Project Y 0...

You are evaluating two projects with the following cash flows: Year Project X Project Y 0 −$552,600 −$521,000 1 217,700 207,400 2 227,600 217,200 3 234,800 225,100 4 194,500 185,900 What is the crossover rate for these two projects?

We have the following two projects: Year Project X Project Y 0 -29,500....... -45,000 1 9,000...

We have the following two projects: Year Project X Project Y 0 -29,500....... -45,000 1 9,000 ...............0 2 9,000............... 0 3 9,000 .............. 0 4 9,000 ...............0 5 9,000........... $84,000 a) Show each project on the time-line. b) What is payback period? What are payback period values for projects X & Y? How do you interpret them? Given a threshold of 3 years which project or projects should you choose if they are independent? What if they are mutually exclusive?...

Calculate the payback period for projects X and Y. They both cost $100,000 (show your work) Year 0...

Calculate the payback period for projects X and Y. They both cost $100,000 (show your work) Year 0 1 2 3 4 5 6 Project X $20m 30m 40m 20m 10m 10m Project Y $40m 30m 30m 20m 10m 0

static int product(int x,int y){ if(x==0||y==0){//checking if x or y is 0 return 0;//if x or...

static int product(int x,int y){ if(x==0||y==0){//checking if x or y is 0 return 0;//if x or y is 0, then the return value and x*y will be zero. }else if(y<0&&x<0){ x=-x;//Changing the sign of x y=-y;//Changing the sign of y }else if(x>=1){ return (y+product(x-1,y)); } return (x+product(x,y-1)); } find the space complexity and the time complexity of the above algorithm.

Find y as a function of x if y′′′+25y′=0 y(0)=2, y′(0)=20, y′′(0)=−100 y(x)=

Consider the following two mutually exclusive projects X and Y: X Y Year 0 -$5,500 -$4,500...

Consider the following two mutually exclusive projects X and Y: X Y Year 0 -$5,500 -$4,500 Year 1 $3,000 $2,800 Year 2 $2,000 $2,000 Year 3 $2,000 $1,000 Year 4 $1,000 $1,000 What is the crossover rate for these two projects? Sketch the NPV profiles for X and Y (point out the IRR of each project and the crossover rate in the NPV profiles). The required return is 10%. Which project should be chosen?

You are considering two independent projects. The required rate of return is 13.75 percent for Project...

You are considering two independent projects. The required rate of return is 13.75 percent for Project A and 14.25 percent for Project B. Project A has an initial cost of $51,400 and cash inflows of $21,400, $24,900, and $22,200 for Years 1 to 3, respectively. Project B has an initial cost of $38,300 and cash inflows of $23,000 a year for 2 years. Which project(s), if either, should you accept? Accept both A and B Reject both A and B...

What is the NPV of this project if the required rate is 7%? Year CF 0 ...

What is the NPV of this project if the required rate is 7%? Year CF 0 -$1312 1 $743 2 $1757 3 $2148

Question 3 Consider the following two mutually exclusive projects. The required rate of return is 10%....

Question 3 Consider the following two mutually exclusive projects. The required rate of return is 10%. Part A: Calculate the NPV for each project. Year Project A Project B 0 -$100,000 -$100,000 1 30,000 80,000 2 40,000 20,000 3 60,000 20,000 Part B: Calculate the IRR for each project. Part C: Calculate the payback period for each project. Part D: Suppose you were the manager deciding between these two projects. Would you prefer to use the payback period decision rule...

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