Question
In: Finance
This table will cover information for Q1-Q3 year project A project B 0 -1000 -900 1...
This table will cover information for Q1-Q3 year project A project B 0 -1000 -900 1 300 240 2 300 240 3 300 240 4 300 240 5 300 240 For above project, the interest rate is 10% Q1 what is NPV of project A
Solutions
Expert Solution
NPV of project A
=-1000+300/(1+10%)^1+300/(1+10%)^2+300/(1+10%)^3+300/(1+10%)^4+300/(1+10%)^5
=137.24
jeff jeffy answered 2 years agoRelated Solutions
This table will cover information for Q1-Q3 year project A project B 0 -1000 -900 1...
This table will cover information for Q1-Q3
year
project A
project B
0
-1000
-900
1
300
240
2
300
240
3
300
240
4
300
240
5
300
240
For above project, interest rate is 10%
Q1 what is NPV of project A
2) q2 what is IRR of project b
3) NPV for A is higher than NPV for project B
True
False
This table will cover information for Q7-Q8 year CF project A CF project B 0 -1000...
This table will cover information for Q7-Q8 year CF project A CF
project B 0 -1000 -800, 1 600 300, 2 700 300, 3 300, 4 400 With
discount rate 7%. Q7: what is project B's NPV? Q8: what is
annualized EAC (annualized NPV) for project A?
Project C0 C1 C2 C3 C4 A -5000 +1000 +1000 +3000 0 B -1000 0 +1000...
Project
C0
C1
C2
C3
C4
A
-5000
+1000
+1000
+3000
0
B
-1000
0
+1000
+2000
+3000
C
-5000
+1000
+1000
+3000
+5000
If the opportunity cost of capital is 11%, and you have
unlimited access to the capital, which one(s) would you accept?
What would be your action if the cost of capital is 16%?
Suppose that you have limited access to the capital and you
need to choose only one project. Which one would you choose? The...
Problems 1-2 are based on the information given in the following table: Year A B 0...
Problems 1-2 are based on the information given in the following
table:
Year
A
B
0
-2,500
-6,000
1
746
1,664
2
746
1,664
3
746
1,664
4
746
1,664
5
746
1,664
IRR
15%
12%
The internal rate of return on the incremental cash flows is
closest to _________.
A.
4%
B.
6%
C.
8%
D.
10%
E.
12%
Questions all relate to the following information: YEAR PROJECT A PROJECT B t=0 -$1,000,000 -$1,350,000 t=1...
Questions all relate to the following information:
YEAR
PROJECT A
PROJECT B
t=0
-$1,000,000
-$1,350,000
t=1
$350,000
$470,000
t=2
$400,000
$550,000
t=3
$320,000
$450,000
t=4
$40,000
$60,000
t=5
$550,000
$550,000
6) Although flawed,
the IRR is widely used. Which of the following is the best
explanation for that phenomenon?
A. It is easy to
calculate.
B. People like
to compare percentages.
C. It is less flawed
than the alternative, i.e. the NPV.
D. One still arrives
at profitable investment decisions, just not at the most...
Q3. Point charge q1 = 2.0 nC is located at (0, 0). What is the electric...
Q3. Point charge q1 = 2.0 nC is located at (0,
0).
What is the electric potential at point A (2.0 cm,0)?
What is the electric potential at point B (3.0 cm, 0)?
What is the change of electric potential from A to
B?
What is the change of electric potential energy for a
proton when it moves from A to B?
What is the change of electric potential energy for an
electron when it moves from A to B?...
arranged q1 to q2 to q3 a is between q1 and q2 b is between q2...
arranged q1 to q2 to q3 a is between q1 and q2 b is between q2
and q3
Let a=3 m, b=7 m, q1=2 C, q3=-3 C. What must q2 be for q1 to
feel no net force.
b)
Let a=3 m, b=8 m, q1=4 C, q2=5 C,
q3=-5 C. What is the magnitude of the electric field a
distance c=4 m vertically above q2 i.e. located at
(x,y)=(a,c)?
TABLE 4 Project Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Cash...
TABLE 4
Project
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5
Cash Flow
Cash Flow
Cash Flow
Cash Flow
Cash Flow
Cash Flow
A
-15000
6000
7000
6000
6000
6000
B
-15000
7000
7000
7000
7000
7000
C
-18000
12000
2000
2000
2000
2000
"Consider the cash flow of the three projects depicted in Table
4. The cost of capital is 7.5%. If an investor decided to take
projects with a payback period of 2 years...
Year Project A Project B 0 –$200 –$200 1 80 100 2 80 100...
Year Project A Project B
0 –$200 –$200
1 80 100
2 80 100
3 80 100
4 80
a) If the opportunity cost of capital is 10%, which of
these projects is worth pursuing? Explain.
b) Suppose that you can choose only one of these
projects. Which would you choose? The discount rate is still 10%.
Justify your reasoning.
c) Which project would you choose if the opportunity
cost of capital were 16%?...
Year Project A PROJECT B PROJECT C 0 (R28000) (R68000) (R15000) 1 R11000 R42000 R11000 2...
Year
Project A
PROJECT B
PROJECT C
0
(R28000)
(R68000)
(R15000)
1
R11000
R42000
R11000
2
R11000
R18000
R4000
3
R11000
R15000
R2000
4
R11000
R18000
R1000
Suddy limited is considering investing in one of three potential
projects.The details of the three projects being considered are
summerized above
Present value factors based on 10% cost of capital for project
duration:
year 1 = 0.909
year 2 = 0.826
year 3 = 0.751
year 4 = 0.683
Required :
1- Determine...
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