Question

2.
Gurdreep is analyzing two projects. The first requires a $ 24,000
initial investment and returns $12,000 a year for four years. The
second project requires a $30,000 initial investment and returns
$14,000 a year for four years. What is the crossover point for
these two projects?

i need answer now

Answer #1

**SEE THE IMAGE. ANY DOUBTS,
FEEL FREE TO ASK. THUMBS UP PLEASE**

**AS NOTHING WAS MENTIONED,
SOLVED WITH EXCEL.**

Unique, Inc., is considering an unusual project. This project
requires an initial cash investment of $24,000. The project will
generate cash inflows of $7,500 in the first year. Then, the
project will do nothing for 2 years, after which time cash inflows
of $10,000 will be generated for 3 years. How long will it take
Unique, Inc., to recover its $24,000 investment?
ANSWER IS 4.65 YEARS PLEASE SHOW STEPS WITHOUT USING EXCEL

Shell Camping Gear, Inc., is considering two mutually
exclusive projects. Each requires an initial investment of
$140,000. John Shell, president of the company, has set a
maximum payback period of 4 years. The after-tax cash inflows
associated with each project are shown in the following
table:
1 20,000 50,000
2 30,000 40,000
3 40,000 30,000
4 50,000 20,000
5 30,000 30,000
a. Determine the payback period of each project.
b. Because they are mutually exclusive, Shell must choose one.
Which...

A firm needs to decide between two mutually exclusive projects.
Project Alpha requires an initial investment of $37,000 today and
is expected to generate cash flows of $31,000 for the next 4 years.
Project Beta requires an initial investment of $92,000 and is
expected to generate cash flows of $36,400 for the next 8 years.
The cost of capital is 10%. The projects can be repeated with no
change in cash flows. What is the NPV of the project that...

FMA investment company is evaluating the following two projects.
the cost of each project is 70,000 AED and the cost of capital is
9%. using the net present value method, which project should the
company choose and why?
the annuall cash flows are as follows:
Year
Project A
Project B
1
20,000
14,000
2
12,000
23,000
3
12,000
26,000
4
30,000
30,000

A firm needs to decide between two mutually exclusive projects.
Project Alpha requires an initial investment of 50,000 today and is
expected to generate cash flows of 51,000 for the next 3 years.
Project Beta requires an intial investment of 85,000 and is
expected to generate cash flows of 49,700 for the next 6 years. The
cost of capital is 6%. The projects can be repeated with no charge
in cash flows. What is the NPV of the project that...

Cold Goose Metal Works Inc. is analyzing a project that requires
an initial investment of $2,225,000. The project’s expected cash
flows are:
Year
Cash Flow
Year
1
$350,000
Year
2
–200,000
Year
3
400,000
Year
4
400,000
Cold Goose Metal Works Inc.’s WACC is 9%, and the project has
the same risk as the firm’s average project. Calculate this
project’s modified internal rate of return (MIRR).
18.18%
20.46%
19.32%
-14.33%
If Cold Goose Metal Works Inc.’s managers select projects based...

Consider the following two projects.
Project A requires an outlay of $100 now
(t=0) and returns $120 in exactly 1 year (t=1).
Project B requires also an outlay of $100 now
(t=0) and returns $175 after 4 years (t=4),
without having any other intermediate payments.
The investor's annual discount rate is 10%.
The two projects are mutually exclusive, i.e. only one of the
two can be selected.
Which project should be selected based on the NPV rule? (3
points)
Which...

Winston Hardware is analyzing a proposed project that requires
an initial investment of $39,900 for fixed assets and $9,900 for
net working capital. The project is expected to produce operating
cash flows of $11,400 a year for 4 years. The net working capital
can be recouped at the end of the project. The fixed assets have an
estimated aftertax salvage value of $16,900. Should this project be
accepted if the required rate of return is 13.9 percent? Why or why...

A capital investment project requires an initial investment of
$100 and generates positive cash flows, $50 and $100, at the end of
the first and second years, respectively. (There is no cash flow
after the second year) The firm uses a hurdle rate of 15% for
projects of similar risk.
Determine whether you should accept or reject the project based
on NPV.
Determine whether you should accept or reject the project based
on IRR.
Determine whether you should accept or...

Project X and Project Y are two mutually exclusive projects.
Project X requires an initial outlay of $38,000 and generates a net
cash flow of $14,000 per year for six years. Project Y requires an
initial outlay of $52,000, and will generate cash flows of $15,300
per year for eight years. Which project should be chosen and why?
(Assume that the discount rate for both projects is 10
percent).
A. Project X because Project X has
a larger NPV than Project...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 8 minutes ago

asked 9 minutes ago

asked 29 minutes ago

asked 41 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago