A production machinery system may be purchased either from either Hillebrand Corporation or Lotux Corporation. The Hillebrand system has an IRR of 30.5 and the Lotux system has an IRR of 40.8. The two projects happen to have equal net present value at a discount rate of 22.25%. The firms cost of capital is 18 percent. Explain with a graph, which project creates more value and which project should be chosen.

based on information on the image attached, Calculate the initial investment required for the project and then Discuss the significance of each ratio in evaluating the project.

Walsh Company is considering three independent projects, each of which requires a $5 million investment. The estimated internal rate of return (IRR) and cost of capital for these projects are presented here: Project H (high risk): Project M (medium risk): Cost of capital = 15% Cost of capital = 13% Project L (low risk): Cost of capital = 7% IRR = 8% Note that the projects' costs of capital vary because the projects have different levels of risk. The company's optimal capital structure calls for 35% debt and 65% common equity, and it expects to have net income of $11,329,500. If Walsh establishes its dividends from the residual dividend model, what will be its payout ratio? Round your answer to two decimal places. % IRR = 22% IRR = 12%

You are analyzing a project and have developed the following estimates. The depreciation is $47,900 a year and the tax rate is 21 percent. What is the worst-case operating cash flow? Unit sales Sales price per unit Variable cost per unit Fixed costs -$2,545 $11,145 $88,855 $27,556 O $63,937 Base-Case Lower Bound Upper Bound 9,800 12,800 $34 $24 $ 9,200 11,300 $ 39 $25 $ 9,700 $44 $26 $ 10,200