A project will result in a $25,000 increase in accounts receivable and require a decrease in inventory levels by $10,000 to $95,000. What is the net cash flow for capital budgeting purposes? a. $35,000 b. -$15,000 c. -$35,000 d. $15,000

$1.5 million budget to spend on new projects for the year. Should the company move forward with one, both, or neither of the two new products? Show your work to support your answer. Insert your answer. 3 4. Calculate the internal rate of return (IRR) of the following cash flows: 4 Year Cash Flow B D Project B NPV: -11271.38 E F 4 G H J K L The company move forward with project A only as it has a positive NPV which give the the profit in the 6 0 1 2 3 5 6 7 330,000 365,000 380,000 415,000 405,000 370000 294,000

XYZ Corporation is considering a capital budgeting project and requires a detailed analysis. The company has provided youwith the following financial information and ratios:Return on Investment (ROI): 15%Payback Period: 3 yearsNet Present Value (NPV): R50,000Internal Rate of Return (IRR): 12%Cash Flows:Year 1: R20 000Year 2: R30 000Year 3: R40 0001.4 Calculate the ARR for XYZ Corporation. Assume depreciation is calculated on the straight-linemethod and that the project has a scrap value of R5000

Capital Budgeting   Assume you are evaluating two mutually exclusive projects, the cash flows of which appear below and that your company uses a cost of capital of 12% to evaluate projects such as these.     Time Project A Cash Flows Project B Cash Flows 0 -$300,000 -$405,000 1 -387,000 134,000 2 -193,000 134,000 3 -100,000 134,000 4 600,000 134,000 5 600,000 134,000 6 850,000 134,000 7 -180,000 0     Determine the crossover point for these projects’ NPV profiles.

Capital Budgeting   Assume you are evaluating two mutually exclusive projects, the cash flows of which appear below and that your company uses a cost of capital of 13% to evaluate projects such as these.     Time Project A Cash Flows Project B Cash Flows 0 -$46,800 -$63,600 1 -21,600 20,400 2 43,200 20,400 3 43,200 20,400 4 43,200 20,400 5 -28,800 20,400     Assuming a cost of capital of 13%, which of these projects should be accepted?

Make a CashFlow projection of 10 million rupees investiment in some project ABC for the next 7 years. Recall following topics you have covered in your course: i) Capital Budgeting Techniques ii) Cash flow Estination. Apply all the techniques on your cash flow projections for decision making Assume required rate of return is 15% . Capital Budgeting Techniques: Payback Period. Discounted Payback Period Net Present Value . Internal Rate of Return Modified Internal Rate of Return Average Accounting Return

-2 CAPITAL BUDGETING CRITERIA You must analyze two projects, X and Y. Each project costs $10,000, and the firm's WACC is 12%. The expected net cash flows are as follows: 1 2 3 + $6,500 $3,500 + $3,000 $3,500 Project X -$10,000 $3,000 $3,500 $1,000 $3,500 Project Y -$10,000 a. Calculate each project's NPV, IRR, MIRR, payback, and discounted payback. b. Which project(s) should be accepted if they are independent? Which project(s) should be accepted if they are mutually exclusive? d. How might a change in the WACC produce a conflict between the NPV and IRR rankings of the two projects? Would there be a conflict if WACC were 5%? (Hint: Plot the NPV profiles. The crossover rate is 6.21875%.) e. Why does the conflict exist? C.

Capital Budgeting   Assume you are evaluating two mutually exclusive projects, the cash flows of which appear below and that your company uses a cost of capital of 13% to evaluate projects such as these.     Time Project A Cash Flows Project B Cash Flows 0 -$46,800 -$63,600 1 -21,600 20,400 2 43,200 20,400 3 43,200 20,400 4 43,200 20,400 5 -28,800 20,400   Calculate the payback period and discounted payback period for projects A & B.

A firm with the following investment opportunities has a capital budget of $10,000. According to the net present value technique, which investments should the firm make if the firm's cost of capital is 10%? Investment A                     B                        C Cost                 $10,000            $7,000            $3,000 Cash Inflow     $12,000.           $8,600            $4,000

The Basics of Capital Budgeting Your division is considering two projects with the following cash flows (in millions):   0 1 2 3                         Project A -$31 $7 $12 $22 Project B -$19 $13 $6 $5 What are the projects' NPVs assuming the WACC is 5%? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to two decimal places. Project A:    $___   million Project B:    $___   million   What are the projects' NPVs assuming the WACC is 10%? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to two decimal places. Project A:  $___   million Project B:  $___   million   What are the projects' NPVs assuming the…