Question

Here are the the cash flows for two mutually exclusive projects: Project C0 C1 C2 C3...

Here are the the cash flows for two mutually exclusive projects:

Project C0 C1 C2 C3
A -21,200 9,328 9,328 9,328
B -21,200 0 0 28,620

what is the IRR of each project? (round answer to 2 decimal places)

Homework Answers

Answer #1

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

As nothing was mentioned excel is used.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Here are the cash flows for two mutually exclusive projects: Project C0 C1 C2 C3 A...
Here are the cash flows for two mutually exclusive projects: Project C0 C1 C2 C3 A −$ 22,200 +$ 9,768 +$ 9,768 +$ 9,768 B − 22,200 0 0 + 29,970 What is the IRR of each project? (Round your answers to 2 decimal places.)
A project has the following cash flows. C0 C1 C2 C3 ($770) $290 $530 $236 Calculate...
A project has the following cash flows. C0 C1 C2 C3 ($770) $290 $530 $236 Calculate an IRR for the project using an iterative technique. (Hint: Start by guessing 17%.) Do not round intermediate calculations. Round PVF values in intermediate calculations to four decimal places. Round the answer to whole percentage. %
Consider the following two mutually exclusive projects:                                  
Consider the following two mutually exclusive projects:                                                               Cash Flows ($ millions)                Project                C0                    C1                    C2                    C3                     A                  –200                +110                +120                      0                     B                  –200                      0                      0                +250 A. Calculate IRR for A, IRR for B, and the cross-over rate of the two projects. B. What is the range of the discount rate (to calculate NPV) that A should be chosen; and what is the range of the discount rate that B should be chosen? (Note: show your work and describe how you determined the ranges)
Here are the cash flows for a project under consideration: C0 C1 C2 −$8,010 +$5,940 +$20,160...
Here are the cash flows for a project under consideration: C0 C1 C2 −$8,010 +$5,940 +$20,160 a. Calculate the project’s net present value for discount rates of 0, 50%, and 100%. (Round your answers to the nearest whole dollar.) b. What is the IRR of the project? (Do not round intermediate calculations. Enter your answer as a whole percent.)
Here are the cash flows for a project under consideration: C0 C1 C2 −$7,020 +$4,860 +$18,360...
Here are the cash flows for a project under consideration: C0 C1 C2 −$7,020 +$4,860 +$18,360 a. Calculate the project’s net present value for discount rates of 0, 50%, and 100%. (Round your answers to the nearest whole dollar.) b. What is the IRR of the project? (Do not round intermediate calculations. Enter your answer as a whole percent.)
Consider the following projects: Cash Flows ($) Project C0 C1 D –10,900 21,800 E –20,900 36,575...
Consider the following projects: Cash Flows ($) Project C0 C1 D –10,900 21,800 E –20,900 36,575 Assume that the projects are mutually exclusive and that the opportunity cost of capital is 8%. a. Calculate the profitability index for each project. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Project Profitability Index D E b-1. Calculate the profitability-index using the incremental cash flows. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Profitability-index b-2....
Consider the following projects: Cash Flows ($) Project C0 C1 D –11,300 22,600 E –21,300 37,275...
Consider the following projects: Cash Flows ($) Project C0 C1 D –11,300 22,600 E –21,300 37,275 Assume that the projects are mutually exclusive and that the opportunity cost of capital is 9%. a. Calculate the profitability index for each project. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Project Profitability Index D E b-1. Calculate the profitability-index using the incremental cash flows. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Profitability-index b-2....
2. A project has the following cash flows             C0                    C1    &n
2. A project has the following cash flows             C0                    C1                    C2                    C3                                       ($1000)             $300                $400                $600 What is the project’s payback period? Year 0 1 2 3 Cash Flow ($1000) $300 $400 $600 Cumulative ($1000) ($700) ($300) 300 a. Calculate the projects NPV at 10%. b. Calculate the project’s PI at 10%. c. Calculate an IRR for the project in question 2 How would you answer a,b, and c in excel? I am getting...
Here are the cash-flow forecasts for two mutually exclusive projects: Cash Flows (dollars) Year Project A...
Here are the cash-flow forecasts for two mutually exclusive projects: Cash Flows (dollars) Year Project A Project B 0 − 120 − 120 1 50 69 2 70 69 3 90 69 a-1. What is the NPV of each project if the opportunity cost of capital is 2%? (Do not round intermediate calculations. Round your answers to 2 decimal places.) a-2. Which project would you choose? b-1. What is the NPV of each project if the opportunity cost of capital...
Consider projects A and B: Cash Flows (dollars) Projects A B C0 450,000 320,000 C1 310,000...
Consider projects A and B: Cash Flows (dollars) Projects A B C0 450,000 320,000 C1 310,000 80,000 C2 120,000 100,000 C3 85,000 250,000 What is the NPV at 10% required rate? Which is the best Project?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT