Question

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:

Accept the project based on its NPV

Reject the project based on its NPV

Accept the project based on its IRR

Reject the project based on its IRR

Answer #1

Part I : Calculation of IRR

Year Cashflows PV@ 10% NPV PV@ 9% NPV

0 -3200 1 -3200 1 -3200

1 974 .909 885.366 .917 893.158

2 1281 .826 1058.106 .842 1078.602

3 1647 .751 1236.897 .772 1271.484

-19.631 43.244

IRR = Lower Rate(LR) + NPV at LR (Differences in rates)

NPV at LR- NPV at HR

= 9% + 43.244(1%)
=**9.688%**

43.244-(-19.631)

**Part 2: Calculation
of NPV at required rate of 8.5%**

Year Cashflows PV@ 8.5% NPV

0 -3200 1 -3200

1 974 .922 898.028

2 1281 .85 1088.85

3 1647 .783 1289.601

**NPV of the project 76.479**

Part 3 : Accept the project based on the NPV at the required rate of return

You've estimated the following cash flows (in $) for a
project:
A
B
1
Year
Cash flow
2
0
-3,430
3
1
974
4
2
1,281
5
3
1,996
The required return is 8.5%.
1. What is the IRR for the project?
2. What is the NPV of the project?
3 .What should you do?
Check all that apply:
Reject the project based on its NPV
Reject the project based on its IRR
Accept the project based on its IRR...

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...

You've estimated the following cash flows (in $) for a
project:
The required return is 8.5%.
What is the IRR for the project?
What is the NPV of the project?
A
B
1
Year
Cash flow
2
0
-3,320
3
1
974
4
2
1,281
5
3
1,875

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?

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...

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...

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?

Problem 5
Intro
The following table shows rates of return for two stocks.
A
B
C
1
Year
Stock A
Stock B
2
1
14%
13%
3
2
-10%
-14%
4
3
-6%
-4%
5
4
5%
28%
6
5
14%
8%
7
6
5%
7%
Attempt 1/3 for 10 pts.
Part 1
What is the arithmetic average return for stock B?
Submit
Attempt 1/3 for 10 pts.
Part 2
What is the covariance of returns? (Use =COVARINACE.S function
in...

ABC Corporation is considering a project that provides the
following cash flows steam:
Year
0
1
2
3
4
5
Cash flows
-$1,000
$375
$425
$250
$110
$100
If WACC is 10%, what is NPV and should the company accept the
project?
Find IRR, MIRR, payback, and discounted payback period.
Considering the following projects.
Project
Year
0
1
2
3
4
A
Cash flows
-$100
$35
$35
$35
$35
B
Cash flows
-$100
$60
$50
$40
$30
Project A has...

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