Question
In: Finance
YEAR CASH FLOWS PROJECT A CASH FLOWS PROJECT B 0 -20000 -20000 1 9000 6000 2...
YEAR CASH FLOWS PROJECT A CASH FLOWS PROJECT B 0 -20000 -20000 1 9000 6000 2 10000 11000 3 12000 15000 Which project should you choose if they are mutually exclusive and the appropriate discount rate (required return) for both is 15%? Enter only the letter A or B. nothing Which project should you choose if they are mutually exclusive and the appropriate discount rate (required return) for both is 20%? Enter only the letter A or B. nothing What is the crossover rate? Enter answer with two decimal places and no %, such as 10.75. nothing
Solutions
jeff jeffy answered 7 months agoRelated Solutions
Consider cash flows for projects A and B Year: 0, 1, 2, 3, 4, 5 Project...
Consider cash flows for projects A and B
Year: 0, 1, 2, 3, 4, 5
Project A: -$1000, 375, 375, 375, 375,-100
Project B: -$1000, 900, 700, 500, -200, 200
The cost of capital for both projects is 10%
1. Find the NPV and MIRR of projects A and B. If project A and B
are mutually exclusive.
2. Find the crossover rate for projects A and B.
3. What is the profitability index for projects A and B? How...
A project has the following cash flows : Year Cash Flows 0 −$12,000 1 5,290 2...
A project has the following cash flows :
Year
Cash Flows
0
−$12,000
1
5,290
2
7,630
3
5,040
4
−1,580
Assuming the appropriate interest rate is 10 percent, what is the
MIRR for this project using the discounting approach?
19.21%
15.23%
13.96%
11.63%
17.77%
A project has the following cash flows : Year Cash Flows 0 −$11,700 1 5,110 2...
A project has the following cash flows : Year Cash Flows 0
−$11,700 1 5,110 2 7,360 3 4,800 4 −1,640 Assuming the appropriate
interest rate is 7 percent, what is the MIRR for this project using
the discounting approach?
1)you've estimated the following cash flows (in$) for a project A. B year. cash flow 0...
1)you've estimated the following cash flows (in$) for a project
A. B
year. cash flow
0 -5,300
1 1,325
2 2,148
3 2,209
what is the IRE for the project
2)you've estimated the following cash flows (in$) for 2
projects:
A. B. C.
year. ProjectA. ProjectB
0. -78 -261
1 15 50
2 21 73
3 29 82
4 35 127
the required return is 7% for both projects
What is the IRR for project B?
What is the...
The following are the cash flows of two projects: Year Project A Project B 0 ?$...
The following are the
cash flows of two projects:
Year
Project A
Project B
0
?$
380
?$
380
1
210
280
2
210
280
3
210
280
4
210
If the opportunity
cost of capital is 11%, what is the profitability index for each
project? (Do not round intermediate calculations. Round
your answers to 4 decimal places.)
The following are the cash flows of two projects: Year Project A Project B 0 ?$...
The following are the cash flows of two projects:
Year Project A Project B
0 ?$ 280 ?$ 280
1 160 180
2 160 180
3 160 180
4 160
If the opportunity cost of capital is 10%, what is the
profitability index for each project? (Do not round intermediate
calculations. Round your answers to 4 decimal places.) Project A
Profitability Index Project B
The following are the cash flows of two projects: Year Project A Project B 0 −$...
The following are the cash flows of two projects: Year Project A
Project B 0 −$ 290 −$ 290 1 170 190 2 170 190 3 170 190 4 170 If
the opportunity cost of capital is 11%, what is the profitability
index for each project? (Do not round intermediate calculations.
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 cash flows of two projects:
Year
Project A
Project B
0
$
(330)
$
(330)
1
160
230
2
160
230
3
160
230
4
160
If the opportunity cost of capital is 12%, what is the
profitability index for each project? (Do not round
intermediate calculations. Round your answers to 4 decimal
places.)
Project Profitability Index:
A
B
The following are the cash flows of two projects: Year Project A Project B 0 ?$...
The following are the cash flows of two projects: Year Project A
Project B 0 ?$ 220 ?$ 220 1 100 120 2 100 120 3 100 120 4 100 If
the opportunity cost of capital is 10%, what is the profitability
index for each project? (Do not round intermediate calculations.
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
cash flows of two projects:
Year
Project A
Project B
0
$
(260
)
$
(260
)
1
140
160
2
140
160
3
140
160
4
140
a. Calculate the NPV for both projects if the
opportunity cost of capital is 16%. (Do not round
intermediate calculations. Round your answers to 2 decimal
places.)
Project A
Project B
b.
Suppose that you can choose only one of these projects. Which would
you choose?
Project A...
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