Question

Intro

You've estimated the following cash flows (in $) for two mutually exclusive projects:

Year | Project A | Project B |

0 | -5,500 | -8,250 |

1 | 1,325 | 1,325 |

2 | 2,148 | 2,148 |

3 | 4,010 | 7,918 |

The required return for both projects is 8%.

Attempt 1/10 for 10 pts.

Part 1

What is the IRR for project A?

Submit

Attempt 1/10 for 10 pts.

Part 2

What is the IRR for project B?

Submit

Attempt 1/5 for 10 pts.

Part 3

Which project seems better according to the IRR method?

Project B

Project A

Submit

Attempt 1/10 for 10 pts.

Part 4

What is the NPV for project A?

Submit

Attempt 1/10 for 10 pts.

Part 5

What is the NPV for project B?

Submit

Attempt 1/5 for 10 pts.

Part 6

Which project seems better according to the NPV method?

Project A

Project B

Submit

Attempt 1/5 for 10 pts.

Part 7

Compare the answers to parts 3 and 6. If both projects are mutually exclusive, which one should you accept?

Project B

Project A

Can you answer all parts?

Answer #1

You've estimated the following cash flows (in $) for two
mutually exclusive projects:
Year
Project A
Project B
0
-5,600
-8,400
1
1,325
1,325
2
2,148
2,148
3
4,193
8,192
The required return for both projects is 8%.
Part 1 : What is the IRR for project A? 3+ Decimals
Part 2 What is the IRR for project B? 3+ Decimals
Part 3 Which project seems better according to the IRR method?
Project A or Project B
Part 4 What...

You've estimated the
following cash flows (in $) for two projects:
Year
Project A
Project B
0
-5,100
-7,650
1
1,325
1,325
2
2,148
2,148
3
3,444
6,967
The required return
for both projects is 8%.
What is the NPV for
project A?
What is the NPV for
project B?
Which project seems
better according to the NPV method?
Project A or Project B

You've estimated the
following cash flows (in $) for two projects:
Year
Project A
Project B
0
-5,400
-8,100
1
1,325
1,325
2
2,148
2,148
3
3,942
7,751
The required return
for both projects is 8%.
A:What is the NPV for
project A?
B:What is the NPV for
project B?
C:Which project seems
better according to the NPV method?

Intro
You've estimated the following cash flows (in $) for a
project:
A B
1 Year Cash flow
2 0 -3,200
3 1 974
4 2 1,281
5 3 1,647
The required return is 8.5%.
Attempt 1/1 for 10 pts.
Part 1
What is the IRR for the project?
Submit
Attempt 1/1 for 10 pts.
Part 2
What is the NPV of the project?
Submit
Attempt 1/1 for 10 pts.
Part 3
What should you do?
Check all that apply:...

You've estimated the following cash flows (in $) for a
project:
A
B
1
Year
Cash flow
2
0
-5,400
3
1
1,325
4
2
2,148
5
3
2,258
Attempt 3/10 for 6 pts.
Part 1
What is the IRR for the project?

Two projects being considered are mutually exclusive and have
the following cash flows:
Year
Project A
Project B
0
−$50,000
−$50,000
1
15,625
0
2
15,625
0
3
15,625
0
4
15,625
0
5
1,562
89,500
If the required rate of return on these projects is 13 percent,
which would be chosen and why?
a.
Project B because of higher NPV.
b.
Project B because of higher IRR.
c.
Project A because of higher NPV.
d.
Project A because of...

Two projects being considered are mutually exclusive and have
the following cash flows:
Year
Project A
Project B
0
−$50,000
−$50,000
1
15,625
0
2
15,625
0
3
15,625
0
4
15,625
0
5
1,562
89,500
If the required rate of return on these projects is 13 percent,
which would be chosen and why?
a.
Project B because of higher NPV.
b.
Project B because of higher IRR.
c.
Project A because of higher NPV.
d.
Project A because of...

Projects A and B are mutually exclusive and have the following
cash flows:
Year
Project A
Project B
0
-$82,000
-$82,000
1
34,000
0
2
34,000
0
3
34,000
108,000
1. What is the crossover rate?
2. Do we have a conflict in ranking between the NPV and IRR
methods if the required rate of return is 8%?
3. Which project should be accepted if the required rate of
return is 5%?
4. Which project should be accepted if the...

If mutually exclusive projects with normal cash flows are being
analyzed, the net present value (NPV) and internal rate of return
(IRR) methods agree.
Projects Y and Z are mutually exclusive projects. Their cash
flows and NPV profiles are shown as follows.
Year
Project Y
Project Z
0
–$1,500
–$1,500
1
$200
$900
2
$400
$600
3
$600
$300
4
$1,000
$200
If the weighted average cost of capital (WACC) for each project
is 14%, do the NPV and...

Your company is considering two projects and has estimated the
following cash flows:
Year Project A Project B
0 -15,000 -20,000
1 10,000 10,000
2 10,000 18,000
Attempt 1/1 for 10 pts.
Part 1
If project B expands your manufacturing capacity by building a
separate factory, what is the relevant cash flow for evaluating
project B in year 2?
Submit
Attempt 1/1 for 10 pts.
Part 2
If project B replaces an existing factory (project A), what is
the relevant...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 5 minutes ago

asked 25 minutes ago

asked 38 minutes ago

asked 38 minutes ago

asked 41 minutes ago

asked 47 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 3 hours ago

asked 3 hours ago