You are choosing between two projects. The cash flows for the projects are given in the following table​ ($ million):

a. What are the IRRs of the two​ projects?

b. If your discount rate is

5.5 %

what are the

NPVs

of the two​ projects?

c. Why do IRR and NPV rank the two projects​ differently?

1. Consider the following two mutually exclusive projects X and Y:

1. 1. What is the crossover rate for these two projects?
2. 2. Sketch the NPV profiles for X and Y (point out the IRR of each project and the crossover rate in the NPV profiles).
   3. The required return is 10%. Which project should be chosen?

Jane is required to take her first required minimum distribution (RMD) this year. Which of the follow are true regarding that distribution?

1. The distribution can be in cash or in kind
2. The first distribution can be delayed until April 1st of the following year
3. The IRA is valued as of the last day of the previous year in making distribution calculations
4. If the distribution is deferred until the following year, she will have to take two distributions next year

1)

1, and 2

1, 2, 3, and 4

2. Suppose an investor is interested in purchasing the following income-producing property for $1,200,000. The investor has estimated the expected cash flows over the next four years to be as follows: Year 1 = $100,000, Year 2 = $110,000, Year 3 = $120,000, Year 4 = $120,000. Assuming the investor’s required rate of return is 11% and the estimated proceeds from selling the property at the end of year four is $1,250,000, what is the NPV of the project? please show work on how it's done

Question 4                                                                            25 Marks

Jimmy Reynolds is considering investing R12,000 in a project with the following cash revenues and expenses:

   Revenue    Expenses

Year 1    R20,000    R18,000

Year 2    R22,000    R19,000

Year 3    R22,000    R20,000

Year 4    R22,000    R17,000

Year 5 R25,000 R17,000

Jimmy requires a minimum rate of return of 8%.

A. Calculate the net cash inflows in each of the 5 years.

B. What is the payback period?

C. What is the net present value of the investment?

The Jumbo Jamboree Corp. plans to close its business over the next five years. They plan, however, to maintain their annual dividends to their loyal shareholders. They plan to play the coming year’s dividend of $2.50, and reduce the dividend to $2.00 for the second year, $1.50 for the third year, $1.00 for the fourth year, and $.50 for the fifth year. The expected market selling price of the stock at the end of the fifth year is expected to be $1.00 per share. If investors require a 12% return on their investment, what is the intrinsic value of the stock ?

Kiewitt is considering a project opportunity that requires a lump sum of initial investment (cash outflow) of $604.02 today. This project is expected to generate cash inflows of $150 in year 1, $Y in year 2 (due to uncertainty), $250 in year 3 and $300 in year 4. If Kiewitt requires 11% annual return for this project, what would be the minimum expected cash flow in year 2 (what is Y)?

A. $88.65

B. $109

C. $200

D. $275

E. $515

You are choosing between two projects. The cash flows for the projects are given in the following table​ ($ million):

a. What are the IRRs of the two​ projects?

b. If your discount rate is

5.1%​,

what are the

NPVs

of the two​ projects?

c. Why do IRR and NPV rank the two projects​ differently?

(Compound annuity) What is the accumulated sum of each of the following streams of payments?

a. $520 a year for 10 years compounded annually at 10 percent.

b. $112 a year for 8 years compounded annually at 8 percent.

c. $34 a year for 13 years compounded annually at 11 percent.

d. $28 a year for 4 years compounded annually at 5 percent.

a. What is the accumulated sum of $520 a year for 10 years compounded annually at 10 percent? $______ (Round to the nearest cent)

Building a bridge costs $2,000,000,000. and takes 2 years, of this cost, $800 million would be spent in year 1, and $1.2 billion in year 2. The bridge yields no benefits during its construction. but starting in year 3, It generates $300 million in benefits a year and costs $100 million a year to maintain. The bridge will last forever. The discount rate is r=0.05. Is this bridge worth building?

Please provide detail explanation ( not in handwriting form which I may not recognize it )