Question
In: Finance
Consider the following cash flows of two mutually exclusive projects for AZ-Motorcars. Assume the discount rate...
Consider the following cash flows of two mutually exclusive projects for AZ-Motorcars. Assume the discount rate for AZ-Motorcars is 8 percent. Year 0 AZM mini-suv 480000 AZF full-suv 830000 year1 azm mini-suv 326000 azf full suv 356000 year 2 azm mini-suv 192000 azf full-suv 432000 year 3 azm mini suv 156000 azf full-suv 296000
what is the payback period for each project?
what is the NPV for each project?
what is the IRR for each project?
Solutions
jeff jeffy answered 2 years agoRelated Solutions
Consider the following cash flows of two mutually exclusive projects for AZ-Motorcars. Assume the discount rate...
Consider the following cash flows of two mutually exclusive
projects for AZ-Motorcars. Assume the discount rate for both
projects is 8 percent.
Year
AZM
Mini-SUV
AZF
Full-SUV
0
–$
530,000
–$
880,000
1
336,000
366,000
2
212,000
452,000
3
166,000
306,000
a.
What is the payback period for each project? (Do not
round intermediate calculations and round your answers to 2 decimal
places, e.g., 32.16.)
Payback period
AZM Mini-SUV
years
AZF Full-SUV
years
b.
What is...
Consider the following cash flows of two mutually exclusive projects for AZ-Motorcars. Assume the discount rate...
Consider the following cash flows of two mutually exclusive
projects for AZ-Motorcars. Assume the discount rate for both
projects is 11 percent.
Year
AZM
Mini-SUV
AZF
Full-SUV
0
–$
520,000
–$
870,000
1
334,000
364,000
2
208,000
448,000
3
164,000
304,000
a.
What is the payback period for each project? (Do not
round intermediate calculations and round your answers to 2 decimal
places, e.g., 32.16.)
b.
What is the NPV for each project? (Do not round
intermediate...
Consider the following cash flows of two mutually exclusive projects for AZ-Motorcars. Assume the discount rate...
Consider the following cash flows of two mutually exclusive
projects for AZ-Motorcars. Assume the discount rate for both
projects is 9 percent.
Year
AZM
Mini-SUV
AZF
Full-SUV
0
–$
485,000
–$
835,000
1
327,000
357,000
2
194,000
434,000
3
157,000
297,000
a.
What is the payback period for each project? (Do not
round intermediate calculations and round your answers to 2 decimal
places, e.g., 32.16.)
b.
What is the NPV for each project? (Do not round
intermediate...
Consider the following cash flows of two mutually exclusiveprojects for AZ-Motorcars. Assume the discount rate...
Consider the following cash flows of two mutually exclusive
projects for AZ-Motorcars. Assume the discount rate for both
projects is 10 percent. YearAZMMini-SUVAZFFull-SUV0−$575,000−$980,0001373,000395,0002219,000477,0003185,000339,000a.What is the payback period for each project? (Do not
round intermediate calculations and round your answers to 2 decimal
places, e.g., 32.16.) b.What is the NPV for each project? (Do not round
intermediate calculations and round your answers to 2 decimal
places, e.g., 32.16.) What is the IRR for each project? (Do not round
intermediate calculations and enter your answers...
Consider the following cash flows of two mutually exclusive projects for A–Z Motorcars. Assume the discount...
Consider the following cash flows of two mutually exclusive
projects for A–Z Motorcars. Assume the discount rate for both
projects is 8 percent.
Year
AZM
Mini-SUV
AZF
Full-SUV
0
–$
530,000
–$
880,000
1
336,000
366,000
2
212,000
452,000
3
166,000
306,000
a. What is the payback period for each project?
(Do not round intermediate calculations and round your
answers to 2 decimal places, e.g., 32.16.)
Payback period
AZM Mini-SUV
years
AZF Full-SUV
years
b. What is the NPV for...
Consider the following cash flows of two mutually exclusive projects for A-Z Motorcars. Assume the discount...
Consider the following cash flows of two mutually exclusive
projects for A-Z Motorcars. Assume the discount rate for both
projects is 12 percent.
Year
AZM
Mini-SUV
AZF
Full-SUV
0
−$500,000
−$850,000
1
330,000
360,000
2
200,000
440,000
3
160,000
300,000
a.
What is the payback period for each project? (Do not
round intermediate calculations and round your answers to 2 decimal
places, e.g., 32.16.)
b.
What is the NPV for each project? (Do not round
intermediate calculations and round your...
Consider the following cash flows of two mutually exclusive projects for A–Z Motorcars. Assume the discount...
Consider the following cash flows of two mutually exclusive
projects for A–Z Motorcars. Assume the discount rate for both
projects is 11 percent.
Year
Mini
Full
0
-495000
-845000
1
329000
359000
2
198000
438000
3
159000
299000
a. What is the payback period for each project?
b. What is the NPV for each project?
c. What is the IRR for each project?
Consider the following cash flows of two mutually exclusive projects for AZ-Motorcars. YEAR AZM MINI-SUV...
Consider the following cash flows of two mutually exclusive
projects for AZ-Motorcars.
YEAR
AZM MINI-SUV
AZF FULL-SUV
0
–$309,671
–$29,559
1
25,500
12,458
2
57,000
9,218
3
50,000
10,390
4
394,000
12,479
Whichever project you choose, if any, you require a 15 percent
return on your investment.
a.
The payback period for Projects A and B is ____ and ____ years,
respectively. (Round your answers to 2...
Consider the following cash flows of two mutually exclusive projects for AZ-Motorcars. YEAR AZM MINI-SUV AZF...
Consider the following cash flows of two mutually exclusive
projects for AZ-Motorcars. YEAR AZM MINI-SUV AZF FULL-SUV 0
–$223,851 –$27,664 1 27,800 11,594 2 58,000 12,793 3 56,000 11,279
4 401,000 9,107 Whichever project you choose, if any, you require a
15 percent return on your investment. Required: a. The payback
period for Projects A and B is and years, respectively. (Round your
answers to 2 decimal places. (e.g., 32.16)) b. The NPV for Projects
A and B is $...
The Camel Company is considering two mutually exclusive projects with the following cash flows. Assume discount...
The Camel Company is considering two mutually exclusive projects
with the following cash flows. Assume discount rate of 12%.
Compute NPV, IRR, PI. Assume the discount rate is 12%. Please
recommend the firm which project(s) to choose under the following
scenarios:
Year
Project A cash flow
Project B Cash flow
0
-75,000
$-60,000
1
$30,000
$25,000
2
$35,000
$30,000
3
$35,000
$25,000
Assume Independent
Projects: (i) which project(s) would you recommend? (ii) Would your
answer change if the firm...
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