Consider the following cash flows and assume i = 10% for all analyses purposes: 12 0 1 2 3 4 5 6 7 8 A -$2,500 $650 $650 $650 $600 $600 $600 $300 $300 Project Cash Flows B -$7,000 -$2,500 -$2,000 -$1,500 -$1,500 -$1,500 -$1,500 C -$5,000 -$2,000 -$2,000 -$2,000 -$2,000 -$2,000 -$2,000 -$2,000 D -$5,000 -$500 -$500 $4,000 $3,000 $3,000 $2,000 $3,000 a) Compute the project balances for Projects A and D, as a function of project year b) Compute the future worth values for Projects A and D at the end of service life. c) Suppose that Projects B and C are mutually exclusive. Assume also that the required service period is eight years and that the company is considering leasing comparable equipment that has an annual lease expense of $3,000 for the remaining years of the required service period for both projects. Which project is the better choice?

Consider the following information:    Cash Flows ($) Project C0 C1 C2 C3 C4 A –5,300 1,300 1,300 2,700 0 B –700 0 600 2,300 3,300 C –5,200 3,400 1,700 800 300   a. What is the payback period on each of the above projects? (Round your answers to 2 decimal places.)

Carland, Incorporated, has a project available with the following cash flows. If the required return for the project is 7.9 percent, what is the project's NPV? Year Cash Flow 0 -$ 258,000 1 66, 300 2 90, 400 3 117,800 4 70,900 5-12,000 $35, 378.61 $18, 968.78 $27, 173.69 $15, 173.69 $13,276.98

A project has the cash flows shown in the following table.  If the cost of capital is 9%, what is the NPV of the project?       Year          0          1          2         3          4          5          6         Incremental Free Cash Flow        -913       281       281       281      281      281      191    Question 5Answer a. $294 b. $272 c. $312 d. $325

Compute the IRR statistic for Project E. The appropriate cost of capital is 8 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Project E             Time: 0 1 2 3 4 5 Cash flow −$1,300 $470 $570 $580 $360 $160   IRR?

Compute the Internal Rate of Return for a project with the following cash flows: Year Cash Flow 0 ($2,000) 1 $500 2 $400 3 $400 4 $1,500   Question 7 options:   7%   40%   12%   8%

1) What is the IRR of the following cashflows? 2) What is the NPV at a 15% target yield? 3) How Much can I pay for the property with a 15% target yield? n 0 ($275,000.00) 1 $21,000.00 2 $12,000.00 3 $32,000.00 4 $41,230.00 5 $48,750.00 $51,230.00 6 $291,000.00

Phoenix Company is considering investments in projects C1 and C2. Both require an initial investment of $222,000 and would yield the following annual net cash flows. (PV of $1. EV of $1. PVA of $1, and EVA of $1) Note: Use appropriate factor(s) from the tables provided. Net cash flows Year 1 Year 2 Year 3 Totals Project C1 $ 10,000 106,000 166,000 $ 282,000 Project C2 $ 94,000 94,000 94,000 $ 282,000 a. The company requires a 12% return from its investments. Compute net present values using factors from Table B.1 in Appendix B to determine which projects, if any, should be accepted. b. Using the answer from part a, is the internal rate of return higher or lower than 12% for (i) Project C1 and (ii) Project C2? Hint: It is not necessary to compute IRR to answer this question. Complete this question by entering your answers in the tabs below. Required A Required B The company requires a 12% return from its investments. Compute net present values using factors from Table B.1 in Appendix B…

Please aware the questions a

Consider the following information relating to the expected cash flows from two independent projects. The cash flows are expressed in real terms, the nominal discount rate is 10% p.a. and the expected inflation rate is 4% p.a. Time 0 1 2 3 4 5 6 Project 1 -$200,000 $50,000 $50,000 $50,000 $50,000 $50,000 Project 2 -$250,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000   a) Calculate the NPV of each of the projects b) In no more than 6 lines, explain which of the above projects you should select and why?