Project A has a $500 investment and cash inflows of $200, $250
and $300 in years...
Project A has a $500 investment and cash inflows of $200, $250
and $300 in years 1-3. Project B has a $400 investment and cash
inflows of $300, $100 and $200 in years 1-3. Given this
information, calculate its cross-over IRR.
a. 12.46%
b. 11.46%
c. 14.46%
d. 13.46%
e. 10.46%
Projects A and B are mutually exclusive. Project A has cash
flows of −$10,000, $5,100, $3,400,...
Projects A and B are mutually exclusive. Project A has cash
flows of −$10,000, $5,100, $3,400, and $4,500 for Years 0 to 3,
respectively. Project B has cash flows of −$10,000, $4,500, $3,400,
and $5,100 for Years 0 to 3, respectively.
B-1 what is the
IRR of project A?
B-2 What is the
IRR of project B?
B-3 Based on
the IRR rule, which project should be accepted and why?
B-4 At what
required rate of...
Calculate IRR - Stone Sour, Inc., has a project with the
following cash flows: The company...
Calculate IRR - Stone Sour, Inc., has a project with the
following cash flows: The company evaluates all projects by
applying the IRR rule. If the appropriate interest rate is 9
percent, should the company accept the project?
Year
Cash Flows ($)
0
-$20,000
1
8,500
2
10,200
3
6,200
Variables
Project 236
Project 264
Interest Rate
12.5%
12.5%
MARR
15%
15%
Project Life (years)
15...
Variables
Project 236
Project 264
Interest Rate
12.5%
12.5%
MARR
15%
15%
Project Life (years)
15
15
Cash Flows/Year
0
(64,000)
(58,000)
1
12,500
11,589
2
12,500
11,995
3
12,500
12,414
4
12,500
12,849
5
12,500
13,299
6
12,500
13,764
7
12,500
14,246
8
12,500
14,744
9
12,500
15,260
10
12,500
15,795
11
12,500
16,347
12
12,500
16,920
13
12,500
17,512
14
12,500
18,125
15
12,500
18,759
ACB Manufacturing is
analyzing investment decisions.
Two projects are
evaluated using the ...
Braun Industries is considering an investment project which has
the following cash flows: Year Cash Flow...
Braun Industries is considering an investment project which has
the following cash flows: Year Cash Flow 0 -$1,000 1 400 2 300 3
500 4 400 The company's WACC is 10 percent. What is the project's
payback, internal rate of return, and net present value? Select
one: a. Payback = 2.6, IRR = 21.22%, NPV = $300. b. Payback = 2.6,
IRR = 21.22%, NPV = $260. c. Payback = 2.4, IRR = 10.00%, NPV =
$600. d. Payback =...
A project costs $5,000 at t = 0 and will generate annual cash
flows of $750...
A project costs $5,000 at t = 0 and will generate annual cash
flows of $750 for 10 years, starting at t = 1. The discount rate is
6%.
What is the NPV?
What is the IRR? (Write down the equation for the IRR and get
the solution using
Excel or the calculator.)
A project costs $5,000 and will generate annual cash flows of
$200 in the first year, $300 in the second year and $400 in the
third year....
The cash flows for a project are: $100 today, $100 in 1 year,
$100 in 2...
The cash flows for a project are: $100 today, $100 in 1 year,
$100 in 2 years, and -$400 in 3 years. (7 points) a. Calculate the
IRR for the project. b. If the cost of capital is 10%, will you
accept this project? Explain concisely.
Please show all work