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Week 10 Assignment: Capital Management
Your name:
Destiny President
Calculate the NPV for Project #1
Variable
Amount
Discount rate (rate of return)
10%
Cash flow for year one
$0.00
Cash flow for year two
$100,000.00
Present value
$82,644.63
Cost of investment
$50,000.00
Net present value (NPV)
$32,644.63
Calculate the NPV for Project #2
Variable
Amount
Discount rate (rate of return)
10%
Cash flow for year one
$50,000.00
Cash flow for year two
$25,000.00
Present value
$66,115.70
Cost of investment
$50,000.00
Net present value (NPV)
$16,115.70
Evaluate the Net Present Value (NPV)
Evaluate the Internal Rate of Return (IRR)
Project Internal Rate of Return (IRR)
Project #1
41%
Project #2
37%
What does the IRR tell us about Project #1?
What does the IRR tell us about Project #2?
Make a Decision
What does the NPV tell us about Project #1, and why is this important?
projects is projected to generate a profit greater than the required rate of return. This is important because it shows that it may be What does the NPV tell us about Project #2, and why is this important?
Although the NPV is lower than projected in Project #2 it still tells us that the project is profitable which is important for investors. The IRR tells us that Project #1 would bring in 5% more in profit. The IRR tells us that Project #2 would bring in 5% less in profit.
Why is this project the best choice?
Based on the long-term increase in value, which project is the best choice for Just Running?
The best choice for Just Running is Project #1 because although the Project isn't projected to show any profit in year 1, it still shows more profit in the second year than Project #2 in both years. It shows that the company would get more out of the investment. How does your decision connect to the first financial principle, money has a time value?
My decision connects back to the first financial principle because I determined the future cash flows of the project.
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Related Questions
Homework, Chapter 26
Average Rate of Return
The following data are accumulated by Watershed Inc. in evaluating two competing capital
investment proposals:
Project A
Project z
Amount of investment
$80,000
$92,000
Useful life
4 years
7 years
Estimated residual value
Estimated total income over the useful life
$8,800
$27,370
Determine the expected average rate of return for each project. Round your answers to one
decimal place.
Project A
Project z
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Discount Rate
12%
Investment Project
Cash Flow
Total Net Cash Flow
Initial Investment
$ (8,000)
?
Year 1
$ 800
?
Year 2
$ 900
?
Year 3
$ 1,500
?
Year 4
$ 1,800
?
Year 5
$ 3,200
NPV of investment
$ ?
Estimated Payback Period
?
Estimate the total net cash flows, NPV of Investment and Estimated Payback Period using the excel's formula.
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QUESTION 8
The INTERNAL RATE OF RETURN for the project shown above is:
O 3.92%
O 13.25
O 15.17%
9 21.22%
O No IRR
QUESTION 9
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Question 2- UNIT 2: CAPITAL BUDGETTING PROCESS
UNIT 3: CASH FLOW ESTIMATION
Dorati Inc. is considering two mutually exclusive projects. Dorati used a 15% required rate of return to
evaluate capital expenditure projects.
A) Assuming the two projects have the costs and cash flows shown below, determine the NPV for each using a replacement chain.
Year Project S Project T
0 –$70,000 –$100,000
1 $50,000 $ 60,000
2 $60,000 $ 70,000
3 $ 80,000
4 $ 90,000
B) Assume in two years Project S will still cost $70,000 and produce the same two years of cash flows.
Find the IRR (using 6% & 8% or 10% & 11%) of an investment having initial cash outflow of $3,000. The cash inflows during the first, second, third and fourth years are expected to be $700, $800, $900 and $1,200 respectively
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QUESTION THREE
Bates Limited is considering investing in two capital investment projects. The expected capital expenditure and its related cash flows is given in the table below
Details
Period
Project A (K)
Project B (K)
Cash Expenditure
At outset
410,000
500,000
Cash inflow
Year 1
140,000
170,000
Cash inflow
Year 2
170,000
195,000
Cash inflow
Year 3
135,000
180,000
Cash inflow
Year 4
110,000
140,000
Your company considers its cost of capital to be 13%. For Project B, assessed as the riskier project of the two, a risk-adjusted cost of capital of 15% is considered appropriate. Base rate is presently 5% and the company pays a margin of 1%, giving an all in borrowing rate of 6%. Inflation is presently 3%.
(a) Assess the two projects using the investment appraisal technique of internal rate of return (IRR).
(b) State which project you would recommend to your board and explain in detail your reasons.
(c) Besides the IRR…
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Question content area top
Part 1
(IRR
calculation)
Determine the IRR on the following projects:
a. An initial outlay of $13,000 resulting in a single free cash flow of $17,165 after 9 years
b. An initial outlay of $13,000 resulting in a single free cash flow of $46,394 after 15 years
c. An initial outlay of $13,000 resulting in a single free cash flow of $105,001after 25 years
d. An initial outlay of $13,000 resulting in a single free cash flow of $13,653 after 4 years
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Part D: Investment Decisions
Now consider that Luxio has identified the following two mutually exclusive projects:
Year
0
1
2
3
4
Cash Flow (A)
-$34,000
$16,500
$14,000
$10,000
$6,000
Cash Flow (B)
-$34,000
$5,000
$10,000
$18,000
$19,000.
1. What is the IRR for each of these projects? Based on IRR decision rule, which
project should the company accept?
2. If the required return is 11%, what is the NPV for each of these projects?
Based on the NPV decision rule, which project should the company accept?
3. Over what range of discount rates would the company choose project A? At
what discount rate would the company be indifferent between these two
projects? Explain.
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Problem #2 - Chapter 13 – Preference Ranking for Investment Projects
The management of Revco Products is exploring four different investment opportunities, Information on the four projects under study
follows:
Project C
(450,000)
522,970
72,970
Project B
(360,000)
433,400
73,400
Project A
Description
Investment Required ($)
Present value of Cash Inflows ($)
Net Present Value ($)
Life of the Project (in years)
Project D
(270,000)
336,140
66,140
(480,000)
567,270
87,270
6
3
12
6
Internal Rate of Return (%)
18%
19%
14%
16%
Because the company's required rate of return is 10%, a 10% discount rate has been used in the present value computations above.
Limited funds are available for the investment, so the company cannot accept all the available projects.
1) Compute the project profitability index for each investment project.
2) Rank the four projects according to preference in terms of the following metrics:
Net Present Value
b. Project Profitability Index
Internal Rate of Return
a.
c.
3)…
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QUESTION 32
As a member of Apache Oil Corporation's financial staff, you must estimate the Year 1 cash flow for a proposed project with the following data. What is the Year 1 cash flow?
Sales revenues, each year
Depreciation
Other operating costs
Interest expense
Tax rate
a. $16,351
O b. $17,212
O c. $18,118
O d. $19,071
e. $20,075
$42,500
$10,000
$17,000
$4,000
35.0%
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Investment required
Present value of cash inflows -
Net present value
Life of the project.
Internal rate of return
1
Required 1
$ (270,000)
336,140
$ 66,140
Project
6 years
18%
Complete this question by entering your answers in the tabs below.
Required 2
Compute the profitability index for each investment project.
Note: Round your answers to 2 decimal places.
Profitability
Index
2
$ (450,000)
522,970
$ 72,970
Project Number
3 years
19%
The net present values above have been computed using a 10% discount rate. Limited funds are available for investment, so the
company can't accept all of the available projects.
Required:
1. Compute the profitability index for each investment project.
2. Rank the four projects according to preference, in terms of net present value, profitability index, and internal rate of return.
3
$ (360,000)
433,400
$ 73,400
12 years.
14
$ (480,000)
567,270
$ 87,270
6 years
16%
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Question 9
Consider the following two mutually exclusive projects:
Year
Cash Flow (A)
Cash Flow (B)
0
-$50,000
-$25,000
1
$25,000
$10,000
2
$10,000
$10,000
3
$10,000
$10,000
4
$20,000
$5,000
Whichever project you choose, if any, you require a 10 percent return on your investment. If you apply the payback criterion, you will choose investment _____, if you apply the NPV criterion, you will choose investment _____; if you apply the IRR criterion, you will choose investment ____; if you choose the profitability index criterion, you will choose investment ____. Based on your first four answers, which project will you finally choose?
Group of answer choices
A; A; A; A; A
A; B; A; A; A
B; A; A; A; A
A; B; B; B; B
B; B; B; B; B
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11:52
Investment Appraisal (Year 2 Column 2...
35%
4. An investment has the following cash
flows. What is the ARR?
Year 0
-90,000
Year 1
45,000
10,000
Year 2
Year 3
30,000
30,000
Year 4
6%
7%
9%
5. Which of the following investments would
you choose based on payback?
Project
3 years 6 months
5 years 10 months
A
В
...
Activity
Chat
Teams
Assignments
More
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Question 7
Chestnut Tree Farms has identified the following two mutually exclusive projects:
Year
Cash Flow (A)
Cash Flow (B)
0
-$50,000
-$50,000
1
$35,000
$15,000
2
$8,000
$13,000
3
$7,000
$15,000
4
$6,000
$20,000
If forced to choose one of the two projects above, over what range of discount rates would you choose Project A?
Group of answer choices
12.32 percent or less
12.32 percent or more
13.16 percent or less
13.98 percent or less
13.98 percent or more
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Question 16 of 30
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Current Attempt in Progress
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Crane Crafts Corp. management is evaluating two independent capital projects that will each cost the company $200,000. The two
projects will provide the following cash flows:
Year
Project A
Project B
1
$66,750
$26,450
2
93,450
66,125
3
34,235 143,250
4
151,655
98,110
(a1)
What is the payback period of both projects? (Round answers to 2 decimal places, e.g. 15.25.)
The Payback of Project A is
years and Project B is
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Consider the two projects in the following table:
Year
0
1
23
14.95%
What is the crossover point for the two projects?
13.70%
13.25%
Expected Net Cash Flow
14.65%
Project A
-$22,000
$15,000
$15,000
$15,000
Project B
-$20,800
$14,100
$14,100
$14,100
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Question 6
A project has expected cash inflows, starting with year 1, of $2,200, $2,900, $3,500 and finally in year four, $4,000. The profitability index is 1.14 and the discount rate is 12 percent. What is the initial cost of the project?
Group of answer choices
$9,211.06
$9,250.00
$8,166.19
$7,899.16
$8,098.24
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Year
0
$10,000.00
1
$ 3,000.00
Project A
Cash Flow
Project B
Cash Flow
$11,000.00
$5,000.00
2
$ 4,000.00
$ 4,000.00
3
$ 5,000.00
$ 4,000.00
4
$3,000.00
$ 3,000.00
Assuming that the relevant cost of capital for both projects is 10%, you should be able to
determine the net present value (NPV) and the internal rate of return (IRR) for both project.
Assume now that the firm has capital rationing, but knows that its true reinvestment rate is
21%, while its cost of capital is 10 percent. Given this information, determine the modified
net present value (MNPV) for Project A.
$3,811.27
O $3,622.02
O $4,280.07
O $4,162.90
O $4,404.83
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Task 2A business has two projects to invest in, as follows:Create a new spread sheet, calculate NPV for the following projects at discount rates of 3% and 7%, respectively, by creating a dynamic process.
Project 1 Project 2Year Cash inflows Cash outflows Cash inflows Cash outflows0 0.00 70,000.00 0.00 70,000.001 24,000.00 13,000.00 25,000.00 15,000.002 22,000.00 1,000.00 25,000.00 03 25,000.00 0 20,000.00 04 25,000.00 0 43,000.00 21,000.005 17,500.00 7,500.00 20,000.00 5,000.00
P1: NPV P2: NPVThen, a) by using a built-in/Excel function, calculate the NPV for each project with discount rates of 3% and 7%, respectively;b) By comparing the NPVs at the rate of…
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Porter Company is analyzing two potential investments
Initial investment
Net cash flow:
Year 1
Year 2
Year 3
Year 4
Project X Project Y
$ 75,900
$ 64,000
26,000
26,000
26,000
4,400
28,000
28,000
20,000
If the company is using the payback period method, and it requires a payback of three years or less, which project(s) should be selected?
0
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Intro
Office Min is considering several risk-free projects:
Project Initial cash flow Cash flow in 1 year
A
-8,100
9,720
-4,000
4,200
-6,500
7,475
B
C
The risk-free interest rate is 10%.
Part 1
What is the NPV of project A?
0+ decimals
Submit
Part 2
What is the NPV of project B?
0+ decimals
Submit
Part 3
What is the NPV of project C?
0+ decimals
Submit
Part 4
Which projects should the company accept?
Check all that apply:
O Project C
Project A
Project B
Submit
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Question list
✔Question 1
Data table
A
1
2 Projected cash outflow
3 Net initial investment
4 Projected cash inflows
5 Year 1
6 Year 2
7
Year 3
8 Year 4
9 Required rate of return
↑
Lulus Construction is analyzing its capital expenditure proposals for the purchase of equipment in the coming year. The capital budget is limited to $12,000,000 for the year. Lyssa
Bickerson, staff analyst at Lulus, is preparing an analysis of the three projects under consideration by Caden Lulus, the company's owner.
(Click the icon to view the data for the three projects.)
Present Value of $1 table
Read the requirements.
B
Project A
с
Project B
Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table
D
Project C
$ 6,000,000 $ 4,000,000 $8,000,000
8%
$ 2,050,000 $ 1,100,000 $4,700,000
2,050,000 2,300,000 4,700,000
2,050,000 700,000 50,000
2,050,000
25,000
8%
8%
Requirements
1. Because the company's cash is limited, Lulus thinks the payback method should be used to…
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QUESTION 14
You have a total of $30,000 to invest in a project and are considering the following three projects:
Cash Flows
Project A
($30,000)
$8,500
Year
Project B
($30,000)
$19,600
Project C
($30,000)
$10,400
1
$9,300
$17,300
$4,500
$10,400
$10,400
3.
$10,400
4.
$11,200
$4,200
$10,400
$12,300
$2,300
$10,400
If the cost of capital (discount rate) is 10%, which project(s) do you invest in and why?
A. Project B- it will pay back the quickest
OB. Project C- it generates the greatest cash flow
C. Project A-it has the highest accounting rate of return
D.Project B-it has the highest net present value
E. Project A- it has the highest net present value
OF. Project C- it has the highest profitability index
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The following table contains information about four projects in which Morales Corporation has the opportunity to invest. This
information is based on estimates that different managers have prepared about their potential project.
E (Click the icon to view the projects information.)
Requirements
1. Rank the four projects in order of preference by using the
a. net present value.
d. payback period.
2. Which method(s) do you think is best for evaluating capital investment projects in general? Why?
c. internal rate of return.
b. project profitability index.
e. accounting rate of return.
Requirement 1. Rank the projects in order of preference.
(a)
(b)
(c)
(d)
(e)
Net Present
Profitability
Internal Rate
Payback
Accounting Rate
Value
Index
of Return
Period
of Return
1st preferred
A
C
2nd preferred
3rd preferred
C
4th preferred
ADB
D AB
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Question 4
BAG Corporation is considering the following two projects; namely Project X and Project Y:
Project X
Cash Flow ($) Cash Flow ($)
-80,000
Project Y
Year 0
-100,000
10,000
20,000
60,000
40,000
30,000
60,000
Year 1
Year 2
Year 3
5,000
Year 4
60,000
The discount rate for Project X is 9%, and the discount rate for Project Y is 10%.
a) i. Calculate the payback period for each project.
ii. Suppose Project X and Project Y are mutually exclusive (you can choose either one of
Project X and Project Y, but cannot choose both), which project(s) should be accepted if
BAG Corporation requires a payback period of 3 years?
i. Calculate the profitability index for each project.
b)
ii. Suppose Project X and Project Y are mutually exclusive, which project(s) should be
accepted when the profitability index rule is considered?
c) i. Calculate the net present value (NPV) for each project.
ii. Suppose Project X and Project Y are mutually exclusive, which project(s) should be
accepted when the NPV…
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QUESTION SIX (6)
Sunrise Industries has four potential projects all with an initial cost of $1,800,000. The capital
budget for the year will only allow Sunrise Industries to accept one of the four projects. Find the
Net Present Value (NPV) for each of the project with the given discount rates, and decide whether
the project should be accepted or rejected.
|Cash Flows
Project A
Project B
Project C
Project D
Year one
$350,000
$400,000
$700,000
$200,000
Year two
Year three
Year four
$350,000
$400,000
$600,000
| $400,000
$350,000
$400,000
$500,000
$600,000
$350,000
$400,000
$400,000
$800,000
Year five
$350,000
$400,000
$300,000
$1,000,000
Discount Rate
5%
9%
14%
19%
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Spreadsheet Link What is the IRR of the following project?
Cash Flow
Year 0 32.000
9,000
2 10,000
15,200
3.
4.
7,800
1) 10.8%
2) 11.2%
• 3) 11.7%
4) 12.0%
5) 12.3%
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Project X Project Y
Year Cash Flow Cash Flow
0 -$1000 -$1000
1 100 400
2 300 400
3 500 400
4 800 400
The cost of capital is 5 percent.
1. What is each project’s NPV? Which project would you choose based on NPV rule?
2. What is each project’s IRR? Which project would you choose based on IRR rule?
3. Why IRR rule and NPV rule lead to different decisions? Which rule is more appropriate to evaluate mutually exclusive projects? Why?
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Exhibit 8-1The cash flows associated with an investment project are as follows:
Cash Flows
Initial Outflow
-$60,000
Year 1
$20,000
Year 2
$30,000
Year 3
$30,000
Year 4
$30,000
Refer to Exhibit 8-1. What’s the payback period of the project? If a firm’s cutoff payback period is 3 years, should it accept the project?
Group of answer choices
2.3 years; accept the project
3.8 years; accept the project
3.8 years; reject the project
2.3 years; reject the project
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Year Cash Flow (A) Cash Flow (D)
$-
-$
0
348,000
51,000
1234
47,000
24,200
2
67,000
22,200
67,000
19,700
14,800
442,000
Whichever project you choose, if any, you require a return of 14 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.)
Project A
Project B
Payback period
years
years
a-
2.
If you apply the payback criterion, which investment will you choose?
O Project A
O Project B
b- What is the discounted payback period for each project? (Do not round intermediate
1. calculations and round your answers to 2 decimal places, e.g., 32.16.)
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Related Questions
- Homework, Chapter 26 Average Rate of Return The following data are accumulated by Watershed Inc. in evaluating two competing capital investment proposals: Project A Project z Amount of investment $80,000 $92,000 Useful life 4 years 7 years Estimated residual value Estimated total income over the useful life $8,800 $27,370 Determine the expected average rate of return for each project. Round your answers to one decimal place. Project A Project zarrow_forwardDiscount Rate 12% Investment Project Cash Flow Total Net Cash Flow Initial Investment $ (8,000) ? Year 1 $ 800 ? Year 2 $ 900 ? Year 3 $ 1,500 ? Year 4 $ 1,800 ? Year 5 $ 3,200 NPV of investment $ ? Estimated Payback Period ? Estimate the total net cash flows, NPV of Investment and Estimated Payback Period using the excel's formula.arrow_forwardQUESTION 8 The INTERNAL RATE OF RETURN for the project shown above is: O 3.92% O 13.25 O 15.17% 9 21.22% O No IRR QUESTION 9arrow_forward
- Question 2- UNIT 2: CAPITAL BUDGETTING PROCESS UNIT 3: CASH FLOW ESTIMATION Dorati Inc. is considering two mutually exclusive projects. Dorati used a 15% required rate of return to evaluate capital expenditure projects. A) Assuming the two projects have the costs and cash flows shown below, determine the NPV for each using a replacement chain. Year Project S Project T 0 –$70,000 –$100,000 1 $50,000 $ 60,000 2 $60,000 $ 70,000 3 $ 80,000 4 $ 90,000 B) Assume in two years Project S will still cost $70,000 and produce the same two years of cash flows. Find the IRR (using 6% & 8% or 10% & 11%) of an investment having initial cash outflow of $3,000. The cash inflows during the first, second, third and fourth years are expected to be $700, $800, $900 and $1,200 respectivelyarrow_forwardQUESTION THREE Bates Limited is considering investing in two capital investment projects. The expected capital expenditure and its related cash flows is given in the table below Details Period Project A (K) Project B (K) Cash Expenditure At outset 410,000 500,000 Cash inflow Year 1 140,000 170,000 Cash inflow Year 2 170,000 195,000 Cash inflow Year 3 135,000 180,000 Cash inflow Year 4 110,000 140,000 Your company considers its cost of capital to be 13%. For Project B, assessed as the riskier project of the two, a risk-adjusted cost of capital of 15% is considered appropriate. Base rate is presently 5% and the company pays a margin of 1%, giving an all in borrowing rate of 6%. Inflation is presently 3%. (a) Assess the two projects using the investment appraisal technique of internal rate of return (IRR). (b) State which project you would recommend to your board and explain in detail your reasons. (c) Besides the IRR…arrow_forwardQuestion content area top Part 1 (IRR calculation) Determine the IRR on the following projects: a. An initial outlay of $13,000 resulting in a single free cash flow of $17,165 after 9 years b. An initial outlay of $13,000 resulting in a single free cash flow of $46,394 after 15 years c. An initial outlay of $13,000 resulting in a single free cash flow of $105,001after 25 years d. An initial outlay of $13,000 resulting in a single free cash flow of $13,653 after 4 yearsarrow_forward
- Part D: Investment Decisions Now consider that Luxio has identified the following two mutually exclusive projects: Year 0 1 2 3 4 Cash Flow (A) -$34,000 $16,500 $14,000 $10,000 $6,000 Cash Flow (B) -$34,000 $5,000 $10,000 $18,000 $19,000. 1. What is the IRR for each of these projects? Based on IRR decision rule, which project should the company accept? 2. If the required return is 11%, what is the NPV for each of these projects? Based on the NPV decision rule, which project should the company accept? 3. Over what range of discount rates would the company choose project A? At what discount rate would the company be indifferent between these two projects? Explain.arrow_forwardProblem #2 - Chapter 13 – Preference Ranking for Investment Projects The management of Revco Products is exploring four different investment opportunities, Information on the four projects under study follows: Project C (450,000) 522,970 72,970 Project B (360,000) 433,400 73,400 Project A Description Investment Required ($) Present value of Cash Inflows ($) Net Present Value ($) Life of the Project (in years) Project D (270,000) 336,140 66,140 (480,000) 567,270 87,270 6 3 12 6 Internal Rate of Return (%) 18% 19% 14% 16% Because the company's required rate of return is 10%, a 10% discount rate has been used in the present value computations above. Limited funds are available for the investment, so the company cannot accept all the available projects. 1) Compute the project profitability index for each investment project. 2) Rank the four projects according to preference in terms of the following metrics: Net Present Value b. Project Profitability Index Internal Rate of Return a. c. 3)…arrow_forwardQUESTION 32 As a member of Apache Oil Corporation's financial staff, you must estimate the Year 1 cash flow for a proposed project with the following data. What is the Year 1 cash flow? Sales revenues, each year Depreciation Other operating costs Interest expense Tax rate a. $16,351 O b. $17,212 O c. $18,118 O d. $19,071 e. $20,075 $42,500 $10,000 $17,000 $4,000 35.0%arrow_forward
- Investment required Present value of cash inflows - Net present value Life of the project. Internal rate of return 1 Required 1 $ (270,000) 336,140 $ 66,140 Project 6 years 18% Complete this question by entering your answers in the tabs below. Required 2 Compute the profitability index for each investment project. Note: Round your answers to 2 decimal places. Profitability Index 2 $ (450,000) 522,970 $ 72,970 Project Number 3 years 19% The net present values above have been computed using a 10% discount rate. Limited funds are available for investment, so the company can't accept all of the available projects. Required: 1. Compute the profitability index for each investment project. 2. Rank the four projects according to preference, in terms of net present value, profitability index, and internal rate of return. 3 $ (360,000) 433,400 $ 73,400 12 years. 14 $ (480,000) 567,270 $ 87,270 6 years 16%arrow_forwardQuestion 9 Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -$50,000 -$25,000 1 $25,000 $10,000 2 $10,000 $10,000 3 $10,000 $10,000 4 $20,000 $5,000 Whichever project you choose, if any, you require a 10 percent return on your investment. If you apply the payback criterion, you will choose investment _____, if you apply the NPV criterion, you will choose investment _____; if you apply the IRR criterion, you will choose investment ____; if you choose the profitability index criterion, you will choose investment ____. Based on your first four answers, which project will you finally choose? Group of answer choices A; A; A; A; A A; B; A; A; A B; A; A; A; A A; B; B; B; B B; B; B; B; Barrow_forward11:52 Investment Appraisal (Year 2 Column 2... 35% 4. An investment has the following cash flows. What is the ARR? Year 0 -90,000 Year 1 45,000 10,000 Year 2 Year 3 30,000 30,000 Year 4 6% 7% 9% 5. Which of the following investments would you choose based on payback? Project 3 years 6 months 5 years 10 months A В ... Activity Chat Teams Assignments Morearrow_forward
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