2.) Cash flows for two different investment projects are given in the Chart. Cash flows for two investments. Project / Year                0            1              2            3 Project A -2500 1000 1500 1000 Project B -2500 -1000 2500 2000   Calculate the net present values ​​of the projects by assuming the desired profit rate as 10%.

Q: The following are the cash flows of two projects:   Year Project A Project B 0 $ (400 ) $ (400 ) 1…

A: Discount Rate = 10% Project A Cash outflow = 400 Cash Inflow = 230 Time Period (N) = 4 years…

Q: Consider the following two mutually exclusive projects: Year                Cashflow (a)…

A:

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A: Cross-over rate is the rate at which the NPV of the given two projects becomes the same. Hence, an…

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A: Therefore, the internal rate of return of Cash flow A is 17.85% and B is 17.01%.

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A: WACC = 12%     Project X   Year  Cash Flows Present Value of cash flow = Cash Flow /…

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A: NPV is the sum of present value of future cashflow less initial investment

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Q: Year Project 1 Project 2 -1000 -1000 1 500 100 400 300 200 500 4 100 600 100 700

A: Payback period is the time in which the inflows recover the initial investment

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A: Working note:

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A: IRR is the annual return on the project based on the cashflows firm will receive from the project.

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A: Standard Disclaimers“Since you have posted a question with multiple subparts, we will solve the…

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A: Formulas: Calculations: Therefore, Project B should be selected.

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A: "Since you have posted a question with multiple sub-parts, we have solved the first three for you.…

Q: Consider two mutually exclusive projects, A and B, whose costs and cash flows are shown in the…

A: Irr is the rate of return at which NPV (net present value ) of the project is zero. cross over rate…

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A: "Hi, Thanks for the Question. Since here no sub-parts are specified to answer and multiple sub-parts…

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A: When there is a conflict between the NPV and IRR. NPV rule will prevail.

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A: a)  Computation of the payback period:

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A: Since you have asked us a question with multiple sub-parts, we will solve the first three sub-parts…

Q: The following are the cash flows of two independent projects: Year Project A Project B 0 $…

A: Cost of capital = 12% Year Project A Project B 0 -270 -270 1 150 170 2 150 170 3 150 170…

Q: You are evaluating two projects with the following cash flows:   Year Project X   Project Y 0…

A: Crossover rate is the cost of capital at which the NPV of two projects is equal.

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Q: The following are the cash flows of two projects: Year Project A Project B 0 (330) (330)         1…

A: A)

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A: i.  Capital Budgeting is the process which is used by companies to evaluate potential major projects…

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