Assume the following information for a capital budgeting proposal with a five-year time horizon: Initial investment:   Cost of equipment (zero salvage value) $ 590,000 Annual revenues and costs:   Sales revenues $ 300,000 Variable expenses $ 130,000 Depreciation expense $ 50,000 Fixed out-of-pocket costs $ 40,000 This proposal’s simple rate of return is closest to:   Multiple Choice   22%.   14%.   15%.   27%.

Internal rate of return and modified internal rate of return. Quark Industries has three potential​ projects, all with an initial cost of ​$1,900,000. Given the discount rate and the future cash flow of each​ project, what are the IRRs and MIRRs of the three projects for Quark​ Industries?     Cash Flow Project M Project N Project O     Year 1 ​ $500,000   ​$600,000   ​$1,000,000     Year 2 ​$500,000   ​$600,000   ​$800,000     Year 3 ​$500,000   ​$600,000   ​$600,000     Year 4 ​$500,000   ​$600,000   ​$400,000     Year 5 ​$500,000   ​$600,000   ​$200,000     Discount rate 9​% 13​% 16​% What is the IRR for project​ M?

You are considering a project with an initial cost of $8245 and a required return of 11.6%. What is the discounted payback if the expected cash flows are $3148, $3429, $2731, $3048, and $3930 respectively over the next 5 years? a. 3.66 years b. 3.66 years c. 3.36 years ✔ d. 2.96 years e. 2.98 years

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

What is the INTERNAL RATE OF RETURN for project A? (Assume a discount rate of 8%) Year Project A Project Z 0 -$35,000 -$350,000 1 17,000 110,000 2 17,000 110,000 3 16,000 105,000 4 15,000 100,000 5 14,000 100,000 O 36.74% O 32.24% O 28.71% O 22.65% 13

Perform a financial analysis for the following project and answer the following related questions. Projected costs for this project are spread over four years as follows: Estimated costs are $200,000 in Year 1 and $50,000 each in Years 2, 3, and 4. - Estimated benefits are $0 in Year 1 and $160,000 each year in Years 2, 3, and 4. - Use an 10% discount rate. What is the NPV of this project (rounded to nearest dollar)? Oa. $49,000.00 Ob. $116,124.00 OC. $66867.00

Granite Holdings is considering a capital budgeting project with a life of 7 years that requires an initial outlay of $277,400. There are four possible cash flow values: Incremental Free Cash Flow -$15,000 18,000 65,000 99,000 Probability 4% 16% 55% 25% 1) The risk-adjusted required rate of return for this project is 12%. Calculate the risk-adjusted net present value of the project and the project's IRR. 2) Should the project be accepted?