Boxwood, Incorporated is considering three independent investment opportunities. The present value of future cash flows, initial investment, and net present value for each of the projects are as follows: Present value of future cash flows Initial investment Net present value Project A $ 1,790,000 790,000 $ 1,000,000 In what order should Boxwood prioritize investment in the projects? Project B. $ 1,780,000 800,000 $980,000 Project C $ 1,610,000 750,000 $ 860,000 Multiple Choice A, B, C B, C, A О О A, C, B B, A, C 的

A company is considering three alternative investment projects with different net cash flows. The present value of net cash flows is calculated using Excel and the results follow. Potential Projects Present value of net cash flows (excluding initial investment) Initial investment Project A $ 11,226 (10,000) Project B $ 10,568 (10,000) a. Compute the net present value of each project. b. If the company accepts all positive net present value projects, which of these will it accept? c. If the company can choose only one project, which will it choose on the basis of net present value? Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the net present value of each project. Potential Projects Project A Project B Project C Present value of net cash flows Initial investment Net present value $ $ $

ABC Company has calculated the net present value of two investment opportunities but must decide which option to pursue: Project X: Present value of cash flows = $117,000 Investment = $100,000 Net present value = $17,000 Project Z: Present value of cash flows = $138,000 Investment = $120,000 Net present value = $18,000 Complete the following: Present value ratio of Project X =  Present value ratio of Project Z =  Decision = Invest in  (Project X/Project Z)

K.Broni Company is considering two mutually exclusive investments. Project P and Project The expected cash flows of these projects are as follows: Year                               Project (P)                              Project (Q)                                             ($)                                          ($) 0                                       (1,000)                                  (1,600) 1                                       (1,200)                                     200 2                                         (600)                                      400  3                                         (250)                                      600 4                                         2,000                                      800 5                                         4,000                                      100   (a) Construct the NPV profiles for Projects P and Q. (b) What is the IRR of each project? (c) Which project would you choose if the…

Bruin, Incorporated, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 −$ 66,000 −$ 66,000 1 42,000 28,400 2 36,000 32,400 3 24,000 38,000 4 15,200 24,400 a-1. What is the IRR for each of these projects?   a-2. If you apply the IRR decision rule, which project should the company accept? b-1. Assume the required return is 12 percent. What is the NPV for each of these projects?   b-2. Which project will you choose of you apply the NPV decision rule? c-1. Over what range of discount rates would you choose Project A?   c-2. Over what range of discount rates would you choose Project B?   d. At what discount rate would you be indifferent between these two projects?

Bruin, Incorporated, has identified the following two mutually exclusive projects:     Year Cash Flow (A) Cash Flow (B) 0 −$ 28,500 −$ 28,500 1 13,900 4,050 2 11,800 9,550 3 8,950 14,700 4 4,850 16,300    a-1. What is the IRR for each of these projects?  a-2. Using the IRR decision rule, which project should the company accept?       multiple choice 1 Project A Project B   a-3. Is this decision necessarily correct?       multiple choice 2 Yes No   b-1. If the required return is 11 percent, what is the NPV for each of these projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)        b-2. Which project will the company choose if it applies the NPV decision rule?       multiple choice 3 Project A Project B    c. At what discount rate would the company be indifferent between these two projects? (Do not round intermediate…

Garage, Inc., has identified the following two mutually exclusive projects:   Year Cash Flow (A) Cash Flow (B) 0 -$43,500 -$43,500 1 21,400 6,400 2 18,500 14,700 3 13,800 22,800 4 7,600 25,200   What is the IRR for each of these projects? Using the IRR decision rule, which project should the company accept? Is this decision necessarily correct? If the required return is 11 percent, what is the NPV for each of these projects? Which project will the company choose if it applies the NPV decision rule? Over what range of discount rates would the company choose project? A? Project B? At what discount rate would the company be indifferent between these two projects? Explain.

A company is considering three alternative investment projects with different net cash flows. The present value of net cash flows is calculated using Excel and the results follow. Potential Projects Present value of net cash flows (excluding initial investment) Initial investment Project A $ 8,328 (10,000) Project B $ 10,809 (10,000) Project C $ 10,685 (10,000) a. Compute the net present value of each project. b. If the company accepts all positive net present value projects, which of these will it accept? c. If the company can choose only one project, which will it choose on the basis of net present value? Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute the net present value of each project. Potential Projects Project A Project B Project C Present value of net cash flows Initial investment Net present value

The management of Winstead Corporation is considering the following three investment projects (Ignore income taxes.):     Project Q Project R Project S Investment required $ 57,200 $ 97,200 $ 176,000 Present value of cash inflows $ 62,092 $ 111,792 $ 193,320   The only cash outflows are the initial investments in the projects.   Required: Rank the investment projects using the project profitability index.

All techniques: Decision among mutually exclusive investments Pound Industries is attempting to select the best of three mutually exclusive projects. The initial investment and subsequent cash inflows associated with these projects are shown in the following table. Cash flows Project A $30,000 $10,000 Project B Project C Initial investment (CF) $60,000 $21,500 $70,000 $22,500 Cash inflows (CF), t= 1 to 5 a. Calculate the payback period for each project. The NPv of projeci C is 017.10|. (Rouna to tne nearesi cEnt.) c. The IRR of project A is %. (Round to two decimal places.) The IRR of project B is %. (Round to two decimal places.) The IRR of project C is %. (Round to two decimal places.) d. Which project would you recommend? (Select the best answer below.) O A. Project C OB. Project B OC. Project A