A firm with a 14% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation, are as follows: Project M Project N 0 1 -$18,000 $5,000 $6,000 $6,000 $6,000 $6,000 -$54,000 $16,800 $16,800 $16,800 $16,800 $16,800 a. Calculate NPV for each project. Do not round Intermediate calculations. Round your answers to the nearest cent. 2 Select Project M: $ Project N: $ Calculate IRR for each project. Do not round Intermediate calculations. Round your answers to two decimal places. Project M: % Project N: Calculate MIRR for each project. Do not round Intermediate calculations. Round your answers to two decimal places. Project M: Project N Calculate payback for each project. Do not round Intermediate calculations. Round your answers to two decimal places. Project M: Project N years Calculate discounted payback for each project. Do not round intermediate calculations. Round your answers to two decimal places. Project M years Select % 5 % % years Project N: years b. Assuming the projects are independent, which one(s) would you recommend? c. If the projects are mutually exclusive, which would you recommend? -Select d. Notice that the projects have the same cash flow timing pattern. Why is there a conflict between NPV and IRR?

Halls Construction is analyzing its capital expenditure proposals for the purchase of equipment in the coming year. The capital budget is limited to $5,000,000 for the year. Laura Bentley​, staff analyst at Halls​, is preparing an analysis of the three projects under consideration by Caden Halls​, the​ company's owner. Data Table   A B C D 1   Project A Project B Project C 2 Projected cash outflow       3 Net initial investment $3,000,000 $2,100,000 $3,000,000 4 Projected cash inflows       5 Year 1 $1,200,000 $1,200,000 $1,700,000 6 Year 2 1,200,000 600,000 1,700,000 7 Year 3 1,200,000 500,000 200,000 8 Year 4 1,200,000   100,000 9 Required rate of return 6% 6% 6   1.. Calculate the payback period for each of the three projects. Ignore income taxes. Using the payback​ method, which projects should Halls ​choose?. Ignore income taxes. ​(Round your answers to…

Company is evaluating two projects, Project A and Project B. The initial investment on both the projects are $25,000. Both have equal lives. The Project A will generate cash flows of $20,000 and $35,000 in year 2 and year 3. The Project B will generate $15,000 in yea- 1, $22,000 year-2, and $25,000 in year-3. Compute the incremental (B-A) IRR. а. -21.38% b. 56.80% с. 21.38% d. -24.75%

A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation, are as follows: 0 1 + 2 + -Select- % Project M -$6,000 $2,000 $2,000 $2,000 $2,000 $2,000 Project N -$18,000 $5,600 $5,600 $5,600 $5,600 $5,600 a. Calculate NPV for each project. Do not round intermediate calculations. Round your answers to the nearest cent. Project M: $ Project N: $ Calculate IRR for each project. Do not round intermediate calculations. Round your answers to two decimal places. Project M: Project N: Calculate MIRR for each project. Do not round intermediate calculations. Round your answers to two decimal places. Project M: Project N: Calculate payback for each project. Do not round intermediate calculations. Round your answers to two decimal places. Project M: Project N: years Calculate discounted payback for each project. Do not round intermediate calculations. Round your answers to two decimal places. Project M: Project N: years b. Assuming…

A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including yearly depreciation, are as follows: Project M -$6,000 $2,000 $2,000 $2,000 $2,000 $2,000 Project N -$18,000 $5,600 $5,600 $5,600 $5,600 $5,600   Calculate discounted payback for each project. Do not round intermediate calculations. Round your answers to two decimal places. Project M:      years Project N:      years

Suppose a company has the following three projects and limits it capital budget to $50,000. Projects Present Value of Cash Inflows Initial Investment A $40,000 $25,000 B 37,500 25,000 70,000 50,000 1. Calculate the projects' NPVs. 2. Calculate the projects' PIs. 3. Which project(s) should the company choose? Why?

The management of Peridot Inc. is submitting a proposal to the Board of Directors for a new facility with the following cash flows. Year Cash flow 0 -214 1 52 2 61 3 74 4 82   The company's hurdle rate is 9%. internal rate of return for the proposed project is closest to:     A. 10.15%.   B. 9.06%.   C. 9.00%.

Assume the following information for a capital budgeting proposal with a five- year time horizon: Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses Depreciation expense Fixed out-of-pocket costs The payback period for this investment is closest to: Multiple Choice O O 2.71 years. 5.75 years. 3.54 years. 1.21 years. $ 460,000 $ 300,000 $ 130,000 $ 50,000 $ 40,000

Jonathon Miller's Co, has provided the following information concerning a capital budgeting project: Investment required in equipment $160,000 Expected life of the project 4 years Salvage value of the equipment $0 Annual sales $360,000 Annual cash operating expenses $290,000 Working capital requirement $20,000 One-time renovation expense in year 3 $20,000 The company’s income tax rate is 30% and its after-tax discount rate is 8%. The working capital would be required immediately and would be released for use elsewhere at the end of the project. The company uses straight-line depreciation on all equipment. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting. The net present value of the entire project is closest to: The following tables have been provided for your reference (using tables provided is optional): Present Value of $1; 1 / (1+r)n Periods 4% 5% 6% 7% 8% 9%…

Five engineering projects are being considered for the upcoming capital budget period. The interrelationships among the projects and the estimated net cash flows of the projects are summarized in the following table: Projects B1 and B2 are mutually exclusive. Projects C1 and C2 are mutually exclusive and dependent on the acceptance of B2. Finally, project D is dependent on the acceptance of C1. Using the PW method, and assuming that MARR = 10% per year, determine which combination (portfolio) of projects is best if the availability of capital is limited to $48,000.