Question
In: Finance
Apple's Project NPV ($) 10,258 IRR (%) 13 MIRR (%) 10 PI 1.5 Payback (Years) 3...
| Apple's Project | |
| NPV ($) | 10,258 |
| IRR (%) | 13 |
| MIRR (%) | 10 |
| PI | 1.5 |
| Payback (Years) | 3 |
| Discounted Payback (years) | 3.5 |
Apple's cost of capital is 9%. Its critical payback and discounted payback periods are 2 and 2.5. Should the project be accepted or not.
NPV - (Accept or Do Not Accept)
IRR - (Accept or Do Not Accept)
MIRR - (Accept or Do Not Accept)
PI - (Accept or Do Not Accept)
Payback - (Accept or Do Not Accept)
Discounted Payback - (Accept or Do Not Accept)
Solutions
Expert Solution
NPV - (Accept or Do Not Accept)
If NPV>0 Accept the project
NPV = 10,258
NPV > 0
NPV - Accept
IRR - (Accept or Do Not Accept)
If IRR> Cost of Capital Accept the project
IRR Value = 13%
IRR (13%) > Cost of Capital(9%)
IRR - Accept
MIRR - (Accept or Do Not Accept)
If MIRR> Cost of Capital Accept theproject
MIRR = 10%
IRR (10%) > Cost of Capital(9%)
MIRR - Accept
PI - (Accept or Do Not Accept)
If Profitability Index PI > 01 Accept the Project
PI>01
PI - Accept
Payback - (Accept or Do Not Accept)
IF Payback Period < Required Payback Accept the Project
Payback Period = 3
Required Payback Accept the Project = 02
Payback Period 3 > Required Payback Accept the Project (02)
Payback Do Not Accept
Discounted Payback - (Accept or Do Not Accept)
IF Discounted Payback Period < Discounted Required Payback Accept the Project
Discounted Payback Period = 3.5
Discounted Required Payback Accept the Project = 2.5
Discounted Payback Period 3.5 > Discounted Required Payback Accept the Project 2.5
Discounted Payback Do Not Accept
jeff jeffy answered 2 years agoRelated Solutions
What is NPV, IRR, PI, MIRR of a project with the following cash flows if the...
What is NPV, IRR, PI, MIRR of a project with the following cash
flows if the discount rate is 14 percent?
Year
CF
0
-18,000
1
5000
2
7500
3
8400
4
2100
Also upload your excel files showing your work.
Please calculate the payback period, IRR, MIRR, NPV, and PI for the following two mutually exclusive...
Please calculate the payback period, IRR, MIRR, NPV, and PI for
the following two mutually exclusive projects. The required rate of
return is 15% and the target payback is 4 years. Explain which
project is preferable under each of the four capital budgeting
methods mentioned above:
Table 1
Cash flows for two mutually exclusive projects
Year
Investment A
Investment B
0
-$5,000,000
-5,000,000
1
$1,500,000
$1,250,000
2
$1,500,000
$1,250,000
3
$1,500,000
$1,250,000
4
$1,500,000
$1,250,000
5
$1,500,000
$1,250,000
6
$1,500,000...
Please calculate the payback period, IRR, MIRR, NPV, and PI for the following two mutually exclusive...
Please calculate the payback period, IRR, MIRR, NPV, and
PI for the following two mutually exclusive projects. The required
rate of return is 15% and the target payback is 4 years. Explain
which project is preferable under each of the four capital
budgeting methods mentioned above:
Table 1
Cash flows for two mutually exclusive
projects
Year
Investment A
Investment B
0
-$5,000,000
-5,000,000
1
$1,500,000
$1,250,000
2
$1,500,000
$1,250,000
3
$1,500,000
$1,250,000
4
$1,500,000
$1,250,000
5
$1,500,000
$1,250,000
6
$1,500,000...
. Complete problems: NPV, IRR, MIRR, Profitability Index, Payback, Discounted Payback A project has an initial...
. Complete problems: NPV, IRR, MIRR, Profitability Index,
Payback, Discounted Payback A project has an initial cost of
$60,000, expected net cash inflows of $10,000 per year for 8 years,
and a cost of capital of 12%. Show your work. a. What is the
project’s NPV? (Hint: Begin by constructing a timeline). b. What is
the project’s IRR? c. What is the project’s MIRR? d. What is the
project’s PI? e. What is the project’s payback period? f. What 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...
(Payback period, NPV, PI, and IRR calculations) You are considering a project with an initial cash...
(Payback
period, NPV, PI, and IRR
calculations)
You are considering a project with an initial cash outlay of
$90,000
and expected free cash flows of
$28,000
at the end of each year for
5
years. The required rate of return for this project is
6
percent.
a. What is the project's payback period?
b. What is the project's
NPV?
c. What is the project's
PI?
d. What is the project's
IRR?
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...
(Payback period, NPV, PI, and IRR calculations) You are considering a project with an initial cash...
(Payback period, NPV, PI, and IRR calculations) You are
considering a project with an initial cash outlay of $80000 and
expected free cash flows of $25000 at the end of each year for 6
years. The required rate of return for this project is 9
percent.
a. What is the project's payback period?
b. What is the project's NPV?
c. What is the project's PI?
d. What is the project's IRR?
(Payback period, NPV, PI, and IRR calculations) You are considering a project with an initial cash...
(Payback period, NPV, PI, and IRR calculations) You are
considering a project with an initial cash outlay of $70,000 and
expected free cash flows of $28,000 at the end of each year for 5
years. The required rate of return for this project is 8
percent.
a. What is the project's payback period?
b. What is the project's NPV?
c. What is the project's PI?
d. What is the project's IRR?
(Payback period, NPV, PI, and IRR calculations) You are considering a project with an initial cash...
(Payback period, NPV, PI, and IRR calculations) You are
considering a project with an initial cash outlay of $90,000 and
expected free cash flows of $22,000 at the end of each year for 7
years. The required rate of return for this project is 9
percent.
a. What is the project's payback period?
b. What is the project's NPV?
c. What is the project's PI?
d. What is the project's IRR?
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- What is the difference among the principles of modularization, abstraction, encapsulation, and separation of interface and...
- An investment project costs $20,100 and has annual cash flows of $4,400 for six years. ...
- PUT IN JAVA PROGRAMMING The StockB class: Design a class named StockB that contains the following...
- Draw a DFA for the following ( ∑ = {0,1}): Set of all strings with.
- In the article from Forbes notes that the goal of a leader is not to clone...
- Many people keep time using a 24 hour clock (11 is 11am and 23 is 11pm,...
- UNIX ONLY -- DIFFICULT LAB ASSIGNMENT This is an extremely difficult subject for me. Could you...
ADVERTISEMENT