Assume the numbers below are representative of the 11 countries. Using the table below for a 0% and 7% discount rate, does the Green Wall pass the total net present value (NPV) test, and should these countries crea the Green Wall (remember to total the annual NPV across all years 0-10)? Suggestions: I do recommend using excel. Green Wall Benefits/Costs Years O 1 2 3 4 5 6 기 8| 9 10 Costs kthousands of $) Initial planting costs 2000 o d oo Recurring maintenance and o150150150150 150 150 150 150 150 150 water costs Benefits Improved agriculture yields O 50 50 75 75 75 100 100 100 100 150 Job o100100100150150 200200 300300 400 creation Cultural o o 25 50 75|100 150 200 300400 500 values NPV @ 0% NPV O 7% Select one: O a. No, don't make the wall at 0% discount rate; Yes, make the wall at 7% discount rate. O b. No, don't make the wall at both the 0% and 7% discount rate. Oc. Yes, make the wall for both levels of the discount rate. O d. Yes, make the wall at 0% discount rate; No, don't make the wall at 7% discount rate.

Assume the numbers below are representative of the 11 countries. Using the table below for a 0% and 7% discount rate, does the Green Wall pass the total net present value (NPV) test, and should these countries crea the Green Wall (remember to total the annual NPV across all years 0-10)? Suggestions: I do recommend using excel. Green Wall Benefits/Costs Years O 1 2 3 4 5 6 기 8| 9 10 Costs kthousands of $) Initial planting costs 2000 o d oo Recurring maintenance and o150150150150 150 150 150 150 150 150 water costs Benefits Improved agriculture yields O 50 50 75 75 75 100 100 100 100 150 Job o100100100150150 200200 300300 400 creation Cultural o o 25 50 75|100 150 200 300400 500 values NPV @ 0% NPV O 7% Select one: O a. No, don't make the wall at 0% discount rate; Yes, make the wall at 7% discount rate. O b. No, don't make the wall at both the 0% and 7% discount rate. Oc. Yes, make the wall for both levels of the discount rate. O d. Yes, make the wall at 0% discount rate; No, don't make the wall at 7% discount rate.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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calculate the Net present value for all three projects, the WACC (discount factor) is 4.25% pick which project is the best one, please show all your working out if possible thankyou and have a nice day :)
Following projects, A and B are mutually exclusive. Use a discount rate of 7.6 percent to solve the following. Year 1 2. 3 4 5. Project A -11000 4000 3000 4000 4000 2000 Project B -15000 5000 4000 5000 7000 3000 Calculate the NPV and IRR, and select the project.
Consider a policy that has benefits and costs that accrue in the following way: Year 0: Benefits = 0; Costs = 100. Year 1: Benefits = 20; Costs = 25. Year 2: Benefits = 40; Costs = 20. Year 3: Benefits = 60; Costs = 20. Year 4: Benefits = 80; Costs = 20. If the social discount rate is 8%, the net present value of the policy is Please report your answer out to at least two digits (e.g., 4.44 or -0.26). Answer:
Consider the following two projects: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Discount Project C/F C/F C/F C/F C/F C/F C/F C/F Rate Alpha -79 20 25 30 35 40 N/A N/A 16% Beta -80 25 25 25 25 25 25 25 17% The net present value (NPV) for project alpha is closest to A. $18.02 B. $14.42 C. $21.62 OD. $12.25
Crane Company is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are as follows. Project Bono Project Edge Project Clayton Capital investment $164,000 $180,500 $204,000 Annual net income: Year 1 14,420 18,540 27,810 2 14,420 17,510 23,690 3 14,420 16,480 21,630 4 14,420 12,360 13,390 5 14,420 9,270 12,360 Total $72,100 $74,160 $98,880 Depreciation is computed by the straight-line method with no salvage value. The company's cost of capital is 15%. (Assume that cash flows occur evenly throughout the year.)
A2. (PaybackandNPV)Threeprojectshavethecashflowsgivenhere.Thecostofcapitalis10%. a. Calculate the paybacks for all three projects. Rank the projects from best to worst based on their paybacks. Calculate the NPVs for all three projects. Rank the projects from best to worst based on their NPVs c. Why are these two sets of rankings different? YEAR 0 1 2 3 4 5Project 1 −10 4 3 2 1 5 Project 2 −10 1 2 3 4 5 Project 3 −10 4 3 2 1 10
Consider a policy that generates benefits and costs this year (i.e., Year 0) and. next year (Year 1). Suppose the government knows that the net benefits this year are $100. Assume the social discount rate is 11%. If the undiscounted net benefits next year are more than $_, then the policy will have a positive net present value. Answer:
Consider a policy that has benefits and costs that accrue in the following way: Year 0: Benefits = 20; Costs = 40. Year 1: Benefits = 25; Costs = 35. Year 2: Benefits = 50; Costs = 10. If the social discount rate is 6%, the net present value of the policy is Answer. Please report your answer out to at least two digits (e.g., 4.44 or -0.26).
Lipsion Ltd company is thinking about investing in one of two potential new productsfor sale. The projections are as follows: year revenue/ product s revenue/ product v0 (150,000) outlay (150000) outlay1 14000 150002 24000 253333 44000 520004 84000 63333 Calculate NPV of both products (to 1 d.p.) assuming a discount rate of 7%. Then decide which product should be selected and why ?
Please show calcualtions: a) Calculate the NPV and IRR for the following project with a discount rate of 10% - ncf yr 0 = -250,000, ncf yr 1 = 200,000, ncf yr 2 = 350,000, ncf yr 3 = 300,000, ncf yr 4 = 300,000, ncf yr 5 = -50,000
Find the internal rate of return for the following investment (yes I want the actual rate). Is it a good idea if MARR=10%? Year -160,400 1 75,000 2 -32,000 3 55,000 4 32,500 5 69,500
Q. 3. You have an opportunity to install solar panels on your home. The upfront cost of installing the system is $30,000 and the system is expected to save you $140 per month in electricity costs. The expected lifetime of the system is 25 years. a) Write down the formula for the internal rate of return on this project. b) Use Excel to graph the internal rate of return at different discount rates, ranging from 0% to 10%. Attach your graph. c) Over the last 20 years the rate of return on the U.S. stock market has been an average of 7% (using the annual rate of growth in the Wilshire 5000 index). Given that you could invest your $30,000 in the stock market, does the investment in solar panels make sense from an economic perspective? Why or why not? d) How high would the monthly electricity savings need to be to justify this investment if the internal rate of return needed to be at least 7%.

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