Question
In: Finance
Consider the following cash flows of two mutually exclusive projects for Braisl Rubber Co. Assume the...
Consider the following cash flows of two mutually exclusive projects for Braisl Rubber Co. Assume the discount rate for both projects is 9 Percent.
|
Year |
Dry PrePreg |
Solvent PrePreg |
|
0 |
1,820,000 |
810,000 |
|
1 |
1,112,000 |
435,000 |
|
2 |
924,000 |
720,000 |
|
3 |
762,000 |
414,000 |
a. What is the payback period for both projects?
|
Dry PrePreg |
Years |
|
|
Solvent PrePreg |
Years |
b. What is the NPV for both projects?
|
Dry PrePreg |
|
|
Solvent PrePreg |
c. What is the IRR for both projects?
|
Dry PrePreg |
% |
|
|
Solvent PrePreg |
% |
d. Calculate the incremental IRR for the cash flows?
|
Incremental IRR |
% |
Solutions
Expert Solution
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jeff jeffy answered 1 year agoRelated Solutions
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Consider the following cash flows of two mutually exclusive projects for Spartan Rubber Company. Assume the...
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Dry Prepreg
Solvent Prepreg
0
–$
1,810,000
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1,111,000
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2
922,000
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3
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0
-$1,700,000
-$750,000
1
1,100,000
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3
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Year
Dry Prepreg
Solvent Prepreg
0
(1,800,000)
(925,000)
1
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