Broxton Group, a consumer electronics conglomerate, is reviewing its annual budget in wireless technology. It is considering investments in three different technologies to develop wireless communication devices. Consider the following cash flows of the three independent projects. Assume the discount rate is 8 percent. Further, the company has only $14 million to invest in new projects this year.                 Cash Flows (in $ millions) Year L6  G5 Wi-Fi   0 −$ 4.0   −$ 10   −$ 14   1    7.0     8     12   2   3.5     23     26   3   1.5     14     14       a. Calculate the profitability index for each investment. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. Calculate the NPV for each investment. (Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89.)

Nikulbhai

Quantitative Problem: Bellinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analysis. Both projects' after-tax cash flows are shown on the time line below. Depreciation, salvage values, net operating working capital requirements, and tax effects are all included in these cash flows. Both projects have 4-year lives, and they have risk characteristics similar to the firm's average project. Bellinger's WACC is 11%.     0 1 2 3 4                       Project A -1,150 700 370 260 310 Project B -1,150 300 305 410 760   What is Project A's payback? Do not round intermediate calculations. Round your answer to four decimal places. ______years What is Project A's discounted payback? Do not round intermediate calculations. Round your answer to four decimal places. ________years What is Project B's payback? Do not round intermediate calculations. Round your answer to four decimal places. _________years…

A shoe manufacturer is evaluating new equipment that would custom fit athletic shoes. The new equipment costs $114,000 and will generate $45,000 in net cash flows for five years. Note: Negative cumulative cash flows should be indicated with a minus sign. Round break-even time answers to two decimal places. Determine the break-even time for this equipment. Year Initial investment Year 1 Year 2 Year 3 Year 4 Year 5 Net Cash Flow x $ (114,000) x 45,000 x 45,000 x 45,000 x 45,000 x 45,000 x Present Value of 1 at 10% 1.0000 0.9091 0.8264 = 0.7513 = 0.6830 = 0.6209 = Present Value of Net Cash Flows $ (114,000) $ Cumulative Present Value of Net Cash Flows (114,000)

Baghiben

$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

Quantitative Problem: Bellinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analysis. Both projects' after-tax cash flows are shown on the time line below. Depreciation, salvage values, neti operating working capital requirements, and tax effects are all included in these cash flows. Both projects have 4-year lives, and they have risk characteristics similar to the firm's average project. Bellinger's WACC is 8%. 2 3 4 0 1 Project A -1,250 600 Project B -1,250 200 What is Project A's MIRR? Do not round intermediate calculations. Round your answer to two decimal places 96 Show All Feedback 450 385 240 390 290 740 Show All Feedback What is Project B's MIRR? Do not round Intermediate calculations. Round your answer to two decimal places. Chuck M En remaining)

Quantitative Problem: Bellinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analysis. Both projects' after-tax cash flows are shown on the time line below. Depreciation, salvage values, net operating working capital requirements, and tax effects are all included in these cash flows. Both projects have 4-year lives, and they have risk characteristics similar to the firm's average project. Bellinger's WACC is 7%.   0 1 2 3 4                       Project A -1,150 650 375 290 340 Project B -1,150 250 310 440 790 What is Project A's payback? Round your answer to four decimal places. Do not round your intermediate calculations. years What is Project A's discounted payback? Round your answer to four decimal places. Do not round your intermediate calculations. years What is Project B's payback? Round your answer to four decimal places. Do not round your intermediate calculations. years What is…

Quantitative Problem: Bellinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analysis. Both projects' after-tax cash flows are shown on the time line below. Depreciation, salvage values, net operating working capital requirements, and tax effects are all included in these cash flows. Both projects have 4-year lives, and they have risk characteristics similar to the firm's average project. Bellinger's WACC is 9%. 1 2 4 Project A -1,000 650 320 270 390 Project B -1,000 250 255 420 840 What is Project A's IRR? Do not round intermediate calculations. Round your answer to two decimal places. % What is Project B's IRR? Do not round intermediate calculations. Round your answer to two decimal places. %

Can I get the answers to 10.11 and 10.12.