Question
In: Finance
Consider the following two projects: Project Year 0 C/F Year 1 C/F Year 2 C/F Year...
Consider the following two projects: Project Year 0 C/F Year 1 C/F Year 2 C/F Year 3 C/F Year 4 C/F Year 5 C/F Year 6 C/F Year 7 C/F Discount Rate Alpha minus79 20 25 30 35 40 N/A N/A 16% Beta minus80 25 25 25 25 25 25 25 17% The net present value (NPV) for project beta is closest to:
Solutions
Expert Solution
| i | ii | iii | iv=ii*iii | |
| year | Beta cash flow | PVIF @ 17% | Present value | |
| 0 | -80 | 1.0000 | (80.00) | |
| 1 | 25 | 0.8547 | 21.37 | |
| 2 | 25 | 0.7305 | 18.26 | |
| 3 | 25 | 0.6244 | 15.61 | |
| 4 | 25 | 0.5337 | 13.34 | |
| 5 | 25 | 0.4561 | 11.40 | |
| 6 | 25 | 0.3898 | 9.75 | |
| 7 | 25 | 0.3332 | 8.33 | |
| 18.06 | ||||
| therefore NPV of Beta = | 18.06 | |||
jeff jeffy answered 1 month agoRelated Solutions
Consider the following two projects: Project Year 0 Cashflow Year 1 Cashflow Year 2 Cashflow Year...
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Project Year 0 Cashflow Year 1
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B -147 50 70 90 5 .15
An incremental IRR of Project B over Project A is
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(Please round to two decimal places, write the number only
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Consider the following two projects:
Project
Year 0
Cash Flow
Year 1
Cash Flow
Year 2
Cash Flow
Year 3
Cash Flow
Year 4
Cash Flow
Discount Rate
A
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40
50
60
N/A
.15
B
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30
30
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Assume that projects A and B are mutually exclusive. The correct
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Group of answer choices
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–$
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–$
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1
48,000
47,000
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43,000
56,000
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a. If these projects are mutually exclusive, which project
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The following are the
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Year
Project A
Project B
0
?$
380
?$
380
1
210
280
2
210
280
3
210
280
4
210
If the opportunity
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1 160 180
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The following are the cash flows of two projects:
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Project A
Project B
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$
(330)
$
(330)
1
160
230
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160
230
3
160
230
4
160
If the opportunity cost of capital is 12%, what is the
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Project Profitability Index:
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Round your answers to 4 decimal places.)
The following are the cash flows of two projects: Year Project A Project B 0 $...
The following are the
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Project B
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(260
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$
(260
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140
160
2
140
160
3
140
160
4
140
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Project A
Project B
b.
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