Question
In: Finance
Novell, inc. has the following mutually exclusive projects. year Project A Project B 0 18,000 21,000...
Novell, inc. has the following mutually exclusive projects.
| year | Project A | Project B |
| 0 | 18,000 | 21,000 |
| 1 | 11,000 | 12,000 |
| 2 | 7,500 | 8,500 |
| 3 | 2,700 | 7,500 |
a.1 calculate the payback period for each project.
| Project A | Years | |
| Project B | Years |
a.2. If the company's payback period is two years, which, if either, of these projects, should be chosen? ( Project A, Project B, Both projects, Neither project)
b.1 what is the NPV for each project if the appropriate discount rate is 16 percent?
| Project A | $ |
| Project B | $ |
b.2 Which if either, of these projects, should be chosen if the appropriate discount rate is 16 percent? (Project A, Project B, Both projects, Neither project)
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Novell, Inc., has the following mutually exclusive projects. Year Project A Project B 0 –$21,000...
Novell, Inc., has the following mutually exclusive projects.
Year
Project A
Project B
0
–$21,000
–$24,000
1
12,500
13,500
2
9,000
10,000
3
3,000
9,000
a-1.
Calculate the payback period for each project. (Do not
round intermediate calculations and round your answers to 3 decimal
places, e.g., 32.161.)
Project A: _____ years
Project B: _____ years
b-1.
What is the NPV for each project if the appropriate discount
rate is...
Novell, Inc., has the following mutually exclusive projects. Year Project A. Project B __ __ 0...
Novell, Inc., has the following mutually exclusive projects.
Year Project A. Project B
__ __
0 22, 000 25,000
1 13,000 14,000
2 9,500 10,500
3 3,100 9,500
a-1. Calculate the payback period for each project. (Do not
round intermediate calculations and round your answers to 3 decimal
places, e.g. 32.161.)
Project A. _____ years
Project B ______ years
a-2. If the company's payback period is two years, which, if
either, of these projects should be chosen? (Choose the...
Novell, Inc., has the following mutually exclusive projects. Year Project A Project B 0 –$27,000...
Novell, Inc., has the following mutually exclusive projects.
Year
Project A
Project B
0
–$27,000
–$30,000
1
15,500
16,500
2
12,000
10,500
3
3,600
12,000
a-1.
Calculate the payback period for each project. (Do not
round intermediate calculations and round your answers to 3 decimal
places, e.g., 32.161.)
Project A: Years
Project B: Years
a-2.
If the company's payback period is two years, which, if either,
of these projects should be...
Novell, Inc., has the following mutually exclusive projects. Year Project A Project B 0 –$25,000...
Novell, Inc., has the following mutually exclusive projects.
Year
Project A
Project B
0
–$25,000
–$28,000
1
14,500
15,500
2
11,000
12,000
3
3,400
11,000
a-1.
Calculate the payback period for each project. (Do not
round intermediate calculations and round your answers to 3 decimal
places, e.g., 32.161.)
a-2.
If the company's payback period is two years, which, if either,
of these projects should be chosen?
Project A
Project...
Novell, Inc., has the following mutually exclusive projects. Year Project A Project B 0 –$34,000...
Novell, Inc., has the following mutually exclusive projects.
Year
Project A
Project B
0
–$34,000
–$37,000
1
19,000
20,000
2
15,500
14,000
3
4,300
15,500
a-1.
Calculate the payback period for each project. (Do not
round intermediate calculations and round your answers to 3 decimal
places, e.g., 32.161.)
a-2.
If the company's payback period is two years, which, if either,
of these projects should be chosen?
Project A
Project...
Novell, Inc., Has the following mutually exclusive project Year Project A Project B 0 $20,000 $23,000...
Novell, Inc., Has the following mutually exclusive project
Year Project A Project B
0 $20,000 $23,000
1 12,000 13,000
2 8,500 9,500
3 2,900 8,500
a.1. Calculate the payback period for each period ( do not round
intermediate calculations and round your answers to decimal
places)
Project A
Years
Project B
Years
a.2 If the company's payback period is two years, which, if
either, of these projects, should be chosen?
b.1. What is the NPV for each project if...
ri Star, Inc., has the following mutually exclusive projects: Year Project A Project B 0 –$...
ri Star, Inc., has the following mutually exclusive
projects:
Year
Project A
Project B
0
–$
13,300
–$
8,700
1
7,500
3,400
2
6,500
2,900
3
2,100
5,300
Calculate 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
Project A
years
Project B
years
Based on the payback period, which project should the company
accept?
Project A
Project B
If the appropriate discount rate is 12...
Tri Star, Inc., has the following mutually exclusive projects: Year Project A Project B 0 –$...
Tri Star, Inc., has the following mutually exclusive
projects:
Year
Project A
Project B
0
–$
13,800
–$
9,200
1
8,400
3,900
2
7,000
3,400
3
2,100
5,800
Calculate 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
Project A
years
Project B
years
Based on the payback period, which project should the company
accept?
Project B
Project A
If the appropriate discount rate is 10...
Tri Star, Inc., has the following mutually exclusive projects: Year Project A Project B 0 –$...
Tri Star, Inc., has the following mutually exclusive
projects:
Year
Project A
Project B
0
–$
15,000
–$
10,300
1
9,500
5,000
2
8,100
4,500
3
2,100
6,900
Calculate 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
Project A
___ years
Project B
___ years
Based on the payback period, which project should the company
accept?
Project B or A?
Project B
Project A
If...
Greystone, Inc., has the following mutually exclusive projects: Year Project A Project B 0 –$ 13,600...
Greystone, Inc., has the following mutually exclusive
projects:
Year Project A Project B
0 –$ 13,600 –$ 9,000
1 8,200 3,700
2 6,800 3,200
3 2,100 5,600
a. Calculate the payback period for each project. (Do not round
intermediate calculations and round your answers to 2 decimal
places, e.g., 32.16.)
b. Based on the payback period, which project should the company
accept?
c. If the appropriate discount rate is 15 percent, what is the
NPV for each project? (Do not...
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