Question
In: Finance
A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax...
A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation, are as follows:
0 1 2 3 4 5
Project M -$24,000 $8,000 $8,000 $8,000 $8,000 $8,000
Project N -$72,000 $22,400 $22,400 $22,400 $22,400 $22,400
-
Calculate NPV for each project. Round your answers to the nearest cent. Do not round your intermediate calculations.
Project M $ ______
Project N $______Calculate IRR for each project. Round your answers to two decimal places. Do not round your intermediate calculations.
Project M ______ %
Project N ______ %Calculate MIRR for each project. Round your answers to two decimal places. Do not round your intermediate calculations.
Project M ______ %
Project N ______ %Calculate payback for each project. Round your answers to two decimal places. Do not round your intermediate calculations.
Project M ______ years
Project N ______ yearsCalculate discounted payback for each project. Round your answers to two decimal places. Do not round your intermediate calculations.
Project M ______ years
Project N ______ years -
Assuming the projects are independent, which one(s) would you recommen
-
If the projects are mutually exclusive, which would you recommend?
-
Notice that the projects have the same cash flow timing pattern. Why is there a conflict between NPV and IRR?
Solutions
jeff jeffy answered 1 month agoRelated Solutions
A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax...
A firm with a 13% WACC is evaluating two projects for this
year's capital budget. After-tax cash flows, including
depreciation, are as follows:
0
1
2
3
4
5
Project M
-$18,000
$6,000
$6,000
$6,000
$6,000
$6,000
Project N
-$54,000
$16,800
$16,800
$16,800
$16,800
$16,800
Calculate NPV for each project. Do not round intermediate
calculations. Round your answers to the nearest cent.
Project M: $
Project N: $
Calculate IRR for each project. Do not round intermediate
calculations. Round your answers to...
A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax...
A firm with a 13% WACC is evaluating two projects for this
year's capital budget. After-tax cash flows, including
depreciation, are as follows:
0
1
2
3
4
5
Project M
-$30,000
$10,000
$10,000
$10,000
$10,000
$10,000
Project N
-$90,000
$28,000
$28,000
$28,000
$28,000
$28,000
Calculate NPV for each project. Round your answers to the
nearest cent. Do not round your intermediate calculations.
Project M: $
Project N: $
Calculate IRR for each project. Round your answers to two
decimal...
A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax...
A firm with a 13% WACC is evaluating two projects for this
year's capital budget. After-tax cash flows, including
depreciation, are as follows:
0
1
2
3
4
5
Project M
-$24,000
$8,000
$8,000
$8,000
$8,000
$8,000
Project N
-$72,000
$22,400
$22,400
$22,400
$22,400
$22,400
Calculate NPV for each project. Round your answers to the
nearest cent. Do not round your intermediate calculations.
Project M $
Project N $
Calculate IRR for each project. Round your answers to two
decimal places. Do...
A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax...
A firm with a 13% WACC is evaluating two projects for this
year's capital budget. After-tax cash flows, including
depreciation, are as follows:
0
1
2
3
4
5
Project M
-$21,000
$7,000
$7,000
$7,000
$7,000
$7,000
Project N
-$63,000
$19,600
$19,600
$19,600
$19,600
$19,600
Calculate NPV for each project. Round your answers to the
nearest cent. Do not round your intermediate calculations.
Project M ____ $
Project N ____ $
Calculate IRR for each project. Round your answers to...
A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax...
A firm with a 13% WACC is evaluating two projects for this
year's capital budget. After-tax cash flows, including
depreciation, are as follows:
0
1
2
3
4
5
Project M
-$9,000
$3,000
$3,000
$3,000
$3,000
$3,000
Project N
-$27,000
$8,400
$8,400
$8,400
$8,400
$8,400
Calculate NPV for each project. Round your answers to the
nearest cent. Do not round your intermediate calculations.
Project M $
Project N $
Calculate IRR for each project. Round your answers to two
decimal places. Do...
A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax...
A firm with a 13% WACC is evaluating two projects for this
year's capital budget. After-tax cash flows, including
depreciation, are as follows:
0
1
2
3
4
5
Project M
-$6,000
$2,000
$2,000
$2,000
$2,000
$2,000
Project N
-$18,000
$5,600
$5,600
$5,600
$5,600
$5,600
Calculate NPV for each project. Do not round intermediate
calculations. Round your answers to the nearest cent.
Project M: $
Project N: $
Calculate IRR for each project. Do not round intermediate
calculations. Round your answers to...
A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax...
A firm with a 13% WACC is evaluating two projects for this
year's capital budget. After-tax cash flows, including
depreciation, are as follows:
0
1
2
3
4
5
Project M
-$15,000
$5,000
$5,000
$5,000
$5,000
$5,000
Project N
-$45,000
$14,000
$14,000
$14,000
$14,000
$14,000
Calculate NPV for each project. Do not round intermediate
calculations. Round your answers to the nearest cent.
Project M: $
Project N: $
Calculate IRR for each project. Do not round intermediate
calculations. Round your answers to...
A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax...
A firm with a 13% WACC is evaluating two projects for this
year's capital budget. After-tax cash flows, including
depreciation, are as follows:
0
1
2
3
4
5
Project M
-$27,000
$9,000
$9,000
$9,000
$9,000
$9,000
Project N
-$81,000
$25,200
$25,200
$25,200
$25,200
$25,200
Calculate NPV for each project. Round your answers to the
nearest cent. Do not round your intermediate calculations.
Project M $
Project N $
Calculate IRR for each project. Round your answers to two
decimal places. Do...
A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax...
A firm with a 13% WACC is evaluating two projects for this
year's capital budget. After-tax cash flows, including
depreciation, are as follows:
0
1
2
3
4
5
Project M
-$30,000
$10,000
$10,000
$10,000
$10,000
$10,000
Project N
-$90,000
$28,000
$28,000
$28,000
$28,000
$28,000
Calculate NPV for each project. Round your answers to the
nearest cent. Do not round your intermediate calculations.
Project M $
Project N $
Calculate IRR for each project. Round your answers to two
decimal places. Do...
A firm with a 14% WACC is evaluating two projects for this year's capital budget. After-tax...
A firm with a 14% WACC
is evaluating two projects for this year's capital budget.
After-tax cash flows, including depreciation, are as follows:
0
1
2
3
4
5
Project M
-$30,000
$10,000
$10,000
$10,000
$10,000
$10,000
Project N
-$90,000
$28,000
$28,000
$28,000
$28,000
$28,000
Calculate NPV for each
project. Do not round intermediate calculations. Round your answers
to the nearest cent.
Project
M: $
Project
N: $
Calculate IRR for each
project. Do not round intermediate calculations. Round your answers
to...
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