Consider the following two mutually exclusive projects:
Year
Cash Flow (A)
Cash Flow (B)
0
–$218,917...
Consider the following two mutually exclusive projects:
Year
Cash Flow (A)
Cash Flow (B)
0
–$218,917
–$16,419
1
25,700
5,985
2
53,000
8,370
3
58,000
13,931
4
420,000
8,655
Whichever project you choose, if any, you require a 6 percent
return on your investment.
What is the discounted payback period for Project A?
What is the discounted payback period for Project B?
Consider the following two mutually exclusive projects:
Year
Cash Flow (A)
Cash Flow (B)
0
–$218,917...
Consider the following two mutually exclusive projects:
Year
Cash Flow (A)
Cash Flow (B)
0
–$218,917
–$16,419
1
25,700
5,985
2
53,000
8,370
3
58,000
13,931
4
420,000
8,655
Whichever project you choose, if any, you require a 6 percent
return on your investment.
What is the NPV for Project A?
What is the NPV for Project B?
Consider the following two mutually exclusive projects:
Year Cash Flow
(A) Cash Flow
(B)
0...
Consider the following two mutually exclusive projects:
Year Cash Flow
(A) Cash Flow
(B)
0 –$ 341,000 –$ 51,000
1 54,000 24,900
2 74,000 22,900
3 74,000 20,400
4 449,000 15,500
Whichever project you choose, if any, you require a return of
15 percent on your investment.
a-1 What is the payback period for each project? (Do not round
intermediate calculations and round your answers to 2 decimal
places, e.g., 32.16.)
a-2...
Consider the following two mutually exclusive projects:
Year
Cash Flow (A)
Cash Flow (B)
0...
Consider the following two mutually exclusive projects:
Year
Cash Flow (A)
Cash Flow (B)
0
–$285,537
–$14,875
1
28,200
4,193
2
59,000
8,632
3
52,000
13,431
4
396,000
8,922
Whichever project you choose, if any, you require a 6 percent
return on your investment.
(e)
What is the NPV for Project A?
(Click to
select)$146,378.68$155,433.03$150,905.86$143,360.56$158,451.15
(f)
What is the NPV for Project B ?
(Click to
select)$15,862.45$14,653.88$14,351.74$15,560.31$15,107.1...
Part 2. Consider the following two
mutually exclusive projects:
Year
Cash Flow (A)
Cash Flow (B)...
Part 2. Consider the following two
mutually exclusive projects:
Year
Cash Flow (A)
Cash Flow (B)
0
- $ 300,000
- $40,000
1
20,000
19,000
2
50,000
12,000
3
50,000
18,000
4
390,000
10,500
Whichever project you choose, if any, you require a 15 percent
return on your investment.
a. If you apply the payback criterion, which
investment will you choose? Why?
b. If you apply the discounted payback
criterion, which investment will you choose? Why?
c. If...
Consider the following two mutually exclusive
projects:
Year
Cash Flow (A)
Cash Flow (B)
0
–$...
Consider the following two mutually exclusive
projects:
Year
Cash Flow (A)
Cash Flow (B)
0
–$
424,000
–$
39,500
1
44,500
20,300
2
61,500
13,400
3
78,500
18,100
4
539,000
14,900
The required return on these investments is 11 percent.
a. What is the payback period for each project?
(Do not round intermediate calculations and round your
answers to 2 decimal places, e.g., 32.16.)
Payback period
Project A
years
Project B
years
b. What is the NPV for each...
Consider the following two mutually exclusive projects
which ever project you choose if any, you require...
Consider the following two mutually exclusive projects
which ever project you choose if any, you require a return of
15% on your investment.
what is the discounted payback period for each project ?
what is the profitability index for each project?
year
cash flow (a)
cash flow (b)
0
-344000
-49000
1
51000
24600
2
71000
22600
3
71000
20100
4
44600
15200
Consider the following two mutually exclusive projects:
Year
Cash Flow (A)
Cash Flow (B)
0
–$40,000...
Consider the following two mutually exclusive projects:
Year
Cash Flow (A)
Cash Flow (B)
0
–$40,000
–$180,000
1
25,000
15,000
2
22,000
45,000
3
20,000
50,000
4
15,000
275,000
The required return on these investments is 11 percent.
Required:
(a)
What is the payback period for each project?
(Do not round intermediate
calculations. Round your answers to 2 decimal
places (e.g., 32.16).)
Payback period
Project A
years
Project B
years ...
Consider the following two mutually exclusive projects:
Year Cash Flow (Project I) Cash Flow (Project II)...
Consider the following two mutually exclusive projects:
Year Cash Flow (Project I) Cash Flow (Project II) 0 -$12,300
-$44,000 1 $1,800 $14,000 2 $6,000 $30,000 3 $2,000 $5,000 4 $5,000
$10,000 5 $7,000 $5,000
The required return is 10% for both projects. Assume that the
internal rate of return (IRR) of Project I and Project II is 18%
and 15%, respectively.
a) Which project will you choose if you apply the NPV criterion?
Why?
b) Which project will you choose...
Consider the following two mutually exclusive projects:
Year 0 Cash Flow(X) - $19,200 Cash Flow(Y) -$19,200...
Consider the following two mutually exclusive projects:
Year 0 Cash Flow(X) - $19,200 Cash Flow(Y) -$19,200
Year 1 Cash Flow(X) 8,650 Cash Flow(Y) 9,700
Year 2 Cash Flow(X) 8,700 Cash Flow(Y) 7,600
Year 3 Cash Flow (X) 8,600 Cash Flow (Y) 8,500
A.) Calculate the IRR for each project.
Project X ___%
Project Y ___%
B.) What is the crossover rate for these two projects?
C.) What is the NPV of Projects X and Y at discount rates of 0...