A firm is considering two mutually exclusive projects, X and Y, with the following cash flows: 0 1 2 3 4 + Project X -$1,000 $100 Project Y -$1,000 $900 $320 $100 $370 $55 $700 $45 The projects are equally risky, and their WACC is 13%. What is the MIRR of the project that maximizes shareholder value? Do not round intermediate calculations. Round your answer to two decimal places. %
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- A firm is considering two mutually exclusive projects, X and Y, with the following cash flows: 0 % 1 2 3 4 -$1,000 $90 $400 $650 Project X Project Y $300 $110 $55 -$1,000 $900 $50 The projects are equally risky, and their WACC is 10%. What is the MIRR of the project that maximizes shareholder value? Round your answer to two decimal places. Do not round your intermediate calculations.A firm is considering two mutually exclusive projects, Xaria Y, with the following cash flows: 0 1.25 X % 1 2 3 4 Project X - $1,000 $110 $320 $370 $650 Project Y -$1,000 $1,000 $110 $50 $45 The projects are equally risky, and their WACC is 10%. What is the MIRR of the project that maximizes shareholder value? Do not round intermediate calculations. Round your answer to two decimal places.A firm is considering two mutually exclusive projects, X and Y, with the following cash flows: 0 1 2 3 4 + + + ㅓ Project X Project Y -$1,000 $90 -$1,000 $1,100 $320 $90 $400 $50 $650 $45 The projects are equally risky, and their WACC is 9%. What is the MIRR of the project that maximizes shareholder value? Do not round intermediate calculations. Round your answer to two decimal places. %
- A firm is considering two mutually exclusive projects, X and Y, with the following cash flows! 0 -$1,000 - $1,000 $900 1 t $90 Gjottel 3 + $430 lun 2 $280 $100 $55 The projects are equally risky, and their WACC is 13%. What is the MIRR of the project that Maximizes shareholder value? 4 Sure + $650 Project A $50 Project BA firm is considering two mutually exclusive projects, X and Y, with the following cash flows: 0 1 2 3 4 Project X -$1,000 $90 $320 $430 $700 Project Y -$1,000 $1,000 $100 $45 $55 The projects are equally risky, and their WACC is 10%. What is the MIRR, Payback Period or Discount Payback Period of project X and project Y. Note: DO NOT SOLVE ON EXCELA firm is considering two investment projects, Y and Z. These projects are NOT mutually exclusive. Assume the firm is not capital constrained. The initial costs and cashflows for these projects are: 0 1 2 3 Y -40,000 17,000 17,000 15,000 Z -28,000 12,000 12,000 20,000 Using a discount rate of 9% calculate the net present value for each project. What decision would you make based on your calculations? How would your decision change if the discount rate used for calculating the net present value is 15%? Calculate an approximate IRR for each project. Assume the hurdle rate is 9%. What decision would you make based on your calculations? Calculate the payback period for each project. The company looks to select investment projects paying back in 2 years. What decision would you make based on your calculations? Critically discuss Net Present Value (NPV), Internal Rate of Return (IRR) and payback period as criteria for investment appraisal.
- A firm has two mutually exclusive investment projects to evaluate. The projects have the following cash flows: Time Cash Flow Cash Flow Y C $95,000 -$70.000 35,000 40.000 55,000 40,000 3 60.000 40.000 40.000 10.000 9% , what is the EAA of the project that adds the most value to the firm? Do not round intermediate calculations, Round vour answer Proiects and Y are equally risky and may be reneated indefinitely, If the firm's WACC. the nearest dollar , whose EAA -s Choose Project -Select-A Company is considering two mutually exclusive projects whose expected net cash flows are in the table below. The company's WACC is 15%. What is the NPV for Project Y? What is the NPV for Project Z? What is the IRR for Project Y? What is the IRR for Project Z? Which Project, if any, should you choose? Time Project Y Project Z 0 $(420.00) $(950.00) | $(572.00) $270.00 2 $(189.00) $270.00 3 $(130.00) $270.00 4 $1,300.00 $ 270.00 5 $720.00 $270.00 6 $980.00 $270.00 7 $(225.00) $270.00 Please show in excel I think im getting the wrong valuesThe Webex Corporation is trying to choose between the following two mutually exclusive designprojects: Year Net Cash Flow Project - I($) Net Cash Flow Project - II($) 0 (53,000) (16,000) 1 27000 9100 2 27000 9100 3 27000 9100 (a) If the required return is 10% and the company applies the Profitability Index decision rule,which project should the firm accept?(b) If the company applies the Net Present Value decision rule, which project should it take?(c) Explain why your answers in (a) and (b) are different(d) Calculate the Internal Rate of Return of both projects.
- You are offered the chance to participate in a project that produces the following cash flows: C0 C1 C2 +$ 5,000 +$ 4,000 −$ 11,000 The internal rate of return is 13.6%. If the opportunity cost of capital is 12%, what is the net present value of the project? Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.A Company is considering two mutually exclusive projects whose expected net cash flows are in the table below. The company's WACC is 15%. What is the NPV for Project Y? What is the NPV for Project Z? What is the IRR for Project Y? What is the IRR for Project Z? Which Project, if any, should you choose? Time Project Y Project Z 0 S (420.00) S(950.00) 1 S(572.00) $270.00 2 S(189.00) S270.00 3 S(130.00) $270.00 4 $1,300.00 $270.00 5 $720.00 $270.00 6 $980.00 $270.00 7 $(225.00) $270.00 Pleaseshow in excel I think im getting the wrong valuesThe net present value (NPV) method estimates how much a potential project will contribute to shareholders' wealth value the project adds; and added value means a higher ✔ stock price. In equation form, the NPV is defined as: Show All Feedback 660 260 NPV = CFO + 3 360 295 Project A Project B -1,170 -1,170 What is Project A's NPV? Do not round intermediate calculations. Round your answer to the nearest cent. $ 250 400 CF₁ CF₂ + .2 (1+1) ² (1+1) + ... + CFt is the expected cash flow at Time t, r is the project's risk-adjusted cost of capital, and N is its life, and cash outflows are treated as negative cash flows. The NPV calculation assumes that cash inflows can be reinvested at the project's risk-adjusted WACC ✓✓. When the firm is considering independent projects, if the project's NPV exceeds zero the firm should accept the project. When the firm is considering mutually exclusive projects, the firm should accept the project with the highest positive ✔✔✔ NPV. Quantitative Problem:…