Question
You are choosing between two projects. The cash flows for the projects are given in the...
You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): Project
Year 0 Year 1 Year 2 Year 3 Year 4
A: - $50 $25 $22 $19 $13
B: - $98 $21 $41 $50 $62
a. What are the IRRs of the two projects?
- The IRR for project A is ?
- The IRR for project B is ?
b. If your discount rate is 5.1 %, what are the NPVs of the two projects?
- If your discount rate is 5.1 %, the NPV for project A is?
- If your discount rate is 5.1 %, the NPV for project B is ?
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
You are choosing between two projects. The cash flows for the projects are given in the...
You are choosing between two projects. The cash flows for the
projects are given in the following table ($ million):
Project
Year 0
Year 1
Year 2
Year 3
Year 4
A
−$48
$26
$21
$21
$$13
B
−$100
$22
$40
$51
$58
a. What are the IRRs of the two projects?
b. If your discount rate is 5.1%, what are the NPVs of the two
projects?
c. Why do IRR and NPV rank the two projects differently?
You are choosing between two projects. The cash flows for the projects are given in the...
You are choosing between two projects. The cash flows for the
projects are given in the following table ($ million): Project
Year 0 Year 1 Year 2 Year 3 Year 4
A: - $49 $23 $19 $22 $17
B: - $102 $20 $40 $48 $60
a. What are the IRRs of the two projects?
- The IRR for project A is ?
- The IRR for project B is ?
b. If your discount rate is 5.5 %, what are...
You are choosing between two projects. The cash flows for the projects are given in the...
You are choosing between two projects. The cash flows for the
projects are given in the following table? ($ million):
Project
Year 0
Year 1
Year 2
Year 3
Year 4
A
-$52
$ 26
$ 21
$20
$17
B
-$101
$ 21
$ 38
$48
$61
a. What are the IRRs of the two? projects? IRR for project A is
_ ?IRR for project B is _
b. If your discount rate is 5.1 % what are the NPVs...
You are choosing between two projects. The cash flows for the projects are given in the...
You are choosing between two projects. The cash flows for the
projects are given in the following table ($ million):
Project
Year 0
Year 1
Year 2
Year 3
Year 4
A
negative $ −$52
$26
$ $21
$22
$17
B
negative $−$102
$22
$42
$49
$58
a. What are the IRRs of the two projects?
b. If your discount rate is
5.3 %5.3%,
what are the
NPVs
of the two projects?
c. Why do IRR and NPV rank the...
You are choosing between two projects. The cash flows for the projects are given in the...
You are choosing between two projects. The cash flows for the
projects are given in the following table ($ million):
Project
Year 0
Year 1
Year 2
Year 3
Year 4
A
negative $ 49−$49
$ 23$23
$ 20$20
$ 21$21
$ 13$13
B
negative $ 98−$98
$ 20$20
$ 42$42
$ 50$50
$ 60$60
a. What are the IRRs of the two projects?
b. If your discount rate is 4.8 %
what are the NPVs of the two projects?...
1.- You are choosing between two projects. The cash flows for the projects are given in...
1.- You are choosing between two projects. The cash flows for
the projects are given in the following table ($ million):
Project
Year 0
Year 1
Year 2
Year 3
Year 4
A
−$48
$26
$19
$19
$15
B
−$101
$22
$42
$48
$61
a. What are the IRRs of the two projects?
b. If your discount rate is 5.1%, what are the NPVs of the
twoprojects?
c. Why do IRR and NPV rank the two projects differently?
2.- You...
1.-You are evaluating a project that will cost $499,000, but is expected to produce cash flows...
1.-You are evaluating a project that will cost $499,000, but is
expected to produce cash flows of $123,000 per year for 10 years,
with the first cash flow in one year. Your cost of capital is 10.6%
and your company's preferred payback period is three years or
less.
a. What is the payback period of this project?
b. Should you take the project if you want to increase the value
of the company?
2.- You are choosing between two projects....
NPV Your division is considering two projects with the following cash flows (in millions): 0 1...
NPV Your division is considering two projects with the following
cash flows (in millions): 0 1 2 3 Project A -$20 $5 $9 $12 Project
B -$13 $8 $7 $3 What are the projects' NPVs assuming the WACC is
5%? Round your answer to two decimal places. Enter your answer in
millions. For example, an answer of $10,550,000 should be entered
as 10.55. Project A $ 5 million Project B $ 8 million What are the
projects' NPVs assuming the...
our division is considering two projects with the following cash flows (in millions): 0 1 2...
our division is considering two projects with the following cash
flows (in millions):
0
1
2
3
Project A
-$31
$7
$12
$22
Project B
-$19
$13
$6
$5
What are the projects' NPVs assuming the WACC is 5%? Enter your
answer in millions. For example, an answer of $10,550,000 should be
entered as 10.55. Negative values, if any, should be indicated by a
minus sign. Do not round intermediate calculations. Round your
answer to two decimal places.
Project A: $ million...
Your division is considering two projects with the following cash flows (in millions): 0 1 2...
Your division is considering two projects with the following
cash flows (in millions):
0 1 2 3
Project A: -$20 $5 $9 $12
Project B: -$13 $8 $7 $3
What are the projects' NPVs assuming the WACC is 5%? Round your
answer to two decimal places. Enter your answer in millions. For
example, an answer of $10,550,000 should be entered as 10.55.
Project A $ million Project B $ million
What are the projects' NPVs assuming the WACC is 10%?...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 5 minutes ago
asked 5 minutes ago
asked 15 minutes ago
asked 17 minutes ago
asked 22 minutes ago
asked 40 minutes ago
asked 43 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago