20 Points You are going to invest in a 5-year project and you compute the average for each alternative: Compute the NPV, PI and Discounted payback period of each alternative. Which among the three alternatives are going to choose and why? 1. The PV of cash inflows is P42,089,860 and PV of cash outflows of P35,298,846 in 5% discount rate. 2 The PV of cash inflows is P15,993,571 and PV of cash outflows of P13,993,463 in 15% discount rate. 3. The PV of cash inflows is P18,807,090 and PV cash outflows of P16,805,996 in 25% discount rate. Answer with text and/or attachments:

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 period

Suppose an investment has an initial capital cost of $1100, an ongoing cost of $6.50 per year and an annual benefit of $80. If the project lasts for 20 years and the discount rate is 7%, the internal rate of return is: Provide your answer in percentage form (e.g. an IRR of 17.66% should be entered as 17.66) to 2 decimal places. Do not include any $ or % 's in your response.

A new project will have an intial cost of $75,000. Cash flows from the project are expected to be $45,000, $25,000, and $20,000 over the next 3 years, respectively. Assuming a discount rate of 8%, what is the project's PI?   Question 7 options:   0.98   1.10   1.05   0.95   1.01

Refer to two projects with the following cash flows: Year Project A Project B 0 -$110 -$110 1 45 55 2 45 55 3 45 55 4 45 If the opportunity cost of capital is 11%, what is the profitability index for each project?

Calculate the payback period, the discounted payback period and the NPV for the following project using a rate of 5%.                                                                                                          Time            Cash Flow                 0  - $53,000    1                                        $  21,000 2                                        $  21,000 3                                        $  21,000   NPV =   Payback =                                                               Discounted Payback =

Calculate the payback period, the discounted payback period and the NPV for the following project using a rate of 5%.                                                                                                                     Time                    Cash Flow                        0  - $63,000        $ 21,000 $ 21,000 $ 21,000 $ 21,000   Payback =                                                                   Discounted Payback =

A firm evaluates all of its projects by using the NPV decision rule. Year Cash Flow 0 -$ 27,000 1 23,000 14,000 8,000 a. At a required return of 25 percent, what is the NPV for this project? 2 WN 3 NPV b. At a required return of 34 percent, what is the NPV for this project? NPV

Internal rate of return and modified internal rate of return. Quark Industries has three potential projects, all with an initial cost of $2,500,000. Given the discount rate and the future cash flow of each project in the following table, BB, what are the IRRS and MIRRS of the three projects for Quark Industries? What is the IRR for project M? % (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Cash Flow Project M Project N Project O Year 1 $600,000 $800,000 $1,300,000 Year 2 $600,000 $800,000 $1,100,000 Year 3 $600,000 $800,000 $900,000 Year 4 $600,000 $800,000 $700,000 Year 5 $600,000 $800,000 $500,000 Discount rate 9% 12% 17% Print Done - X

time value of money practice example: Please show calcualtions/steps (excell or other format): a) Calculate PB, DPB, NPV, IRR and PI for the following project: - discount rate of 12% - initial investment = 750,000 - ncf yr 1 = 150,000 - ncf yr 2 = 300,000 - ncf yr 3 = 400,000 - ncf yr 4 = 250,000 - ncf yr 5 = 100,000