10 A project has the following cash flows: Year 0 1 234 Project Cash Flows -$5,987.00 $2,456.00 $2,456.00 $2,456.00 $2,456.00 Its cost of capital is 10 percent. What is the project's discounted payback period? O 3.23 years 2.33 years 2.93 years 3.53 years 2.63 years
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- CAPITAL BUDGETING CRITERIA: MUTUALLY EXCLUSIVE PROJECTS Project S requires an initial outlay at t = 0 of 17,000, and its expected cash flows would be 5,000 per year for 5 years. Mutually exclusive Project L requires an initial outlay at t = 0 of 30,000, and its expected cash flows would be 8,750 per year for 5 years. If both projects have a WACC of 12%, which project would you recommend? Explain.A project has the following cash flows: Year Cash Flows 0 -17000.0 1 4410.0 2 6030.0 3 6320.0 4 5210.0 The required return is 6.3 percent. What is the NPV for this project? Select one: a.1601.47 b.3303.31 c.2132.64 d.1827.08 e.4970.0A project has the following cash flows: Year 0 1 2 3 4 Project Cash Flows -$4,724.00 $2,421.00 $2,421.00 $2,421.00 $2,421.00 Its cost of capital is 11.3 percent. What is the project's discounted payback period? O 1.94 years 2.14 years O2.34 years O2.74 years O 2.54 years
- Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$ 15,456 5,225 8,223 13,013 8,705 0 1 234 -$ 276,363 26,400 51,000 57,000 402,000 Whichever project you choose, if any, you require a 6 percent return on your investment. a. What is the payback period for Project A? Payback period b. What is the payback period for Project B? Payback period c. What is the discounted payback period for Project A? Discounted payback periodA company has a project available with the following cash flows: Year 0 2234O 1 Cash Flow -$36,470 12,510 14,740 19,520 10,880 If the required return for the project is 7.7 percent, what is the project's NPV?The following are the cash flows of two projects: Year 0 1 2 3 4 Project A $ (220) 100 100 100 100 Project B $ (220) 120 120 120 What are the internal rates of return on projects A and B? Note: Enter your answers as a percent rounded to 2 decimal places. Project A B IRR % %
- ed Your company has a project available with the following cash flows: Year Cash Flow 0 -$80,900 12345 21,600 25,200 31,000 26,100 20,000 If the required return is 15 percent, should the project be accepted based on the IRR?What is the project's MIRR? r = 10.00% 0 Year Cash flows O a. 22.51% O b. 11.75% O c. 17.21% O d. 14.81% O e. 15.65% -$875 1 $300 2 $320 3 $340 $360You are analyzing two proposed capital investments with the following cash flows: Year Project X Project Y - $20,000 - $20,000 12,630 7,470 5,660 7,470 3 6,360 7,470 4 1,920 7,470 1, 2.
- Projects A and B have the following cash flows: End-of-Year Cash Flows 0 1 2Project A − $1,000 $1,150 $100Project B − $1,000 $100 $1,300Their cost of capital is 10%.Q UESTIO NS:a. What are the projects’ NPVs, IRRs, and MIRRs?b. Which project would each method select if the projects were mutually exclusive?The following are the cash flows of two projects: Year O1234 0 Project A $ (340) Project B $ (340) 170 240 170 240 170 240 170 What is the payback period of each project? Note: Round your answers to 1 decimal place. > Answer is complete but not entirely correct. Project A Payback Period 2.0 years B 2.8 yearsFilter Corporation has a project available with the following cash flows: Year Cash Flow 0 −$ 14,500 1 7,400 2 8,700 3 2,500 4 2,100 What is the project's IRR? Multiple Choice 21.63% 22.49% 23.07% 20.76% 24.22%