Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation (BRC). Both projects require an annual return of 15 percent. Year Deepwater Fishing New Submarine Ride 0-$960,000-$1,870,000 1 380,000 920,000 2 518,000 810,000 3 430,000 770,000 Calculate NPV
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- Consider the following cash flows on two mutually exclusive projects for XYZ Corporation. Both projects require an annual return of 15%. Year Water Fishing Submarine Ride 0 $975,000 $1,900,000 1 $395,000 $950,000 2 $530,000 $825,000 3 $445,000 $800,000 * Computer the IRR for both projects. -Waterfishing XX%? -Submarine Ride XX%?Consider the follow cash flows on two mutually exclusive projects for the bahamas recreation corporation Both projects require an annual return of 14 percent year Deepwater New Sub 0 -875,000 -1,650,000 1 330,000 890,000 2 480,000 730,000 3 $440,000 590,0005 Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation. Both projects require an annual return of 16 percent. Deepwater Year Fishing Submarine Ride 0 -$995,000 1 415,000 -$ 1,940,000 990,000 2 546,000 845,000 3 465,000 840,000 a-1. Compute the IRR for both projects. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. a-2. Based on the IRR, which project should you choose? b-1. Calculate the incremental IRR for the cash flows. Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b-2. Based on the incremental IRR, which project should you choose? c-1. Compute the NPV for both projects. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. c-2. Based on the NPV, which project should you choose? c-3. Is the NPV rule consistent with the incremental IRR…
- Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation (BRC). Both projects require an annual return of 17 percent. Year Deepwater Fishing New Submarine Ride 0 −$ 1,000,000 −$ 1,950,000 1 420,000 1,000,000 2 550,000 850,000 3 470,000 850,000 a-1. Compute the IRR for both projects. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a-2. Based on the IRR, which project should you choose? multiple choice 1 Deepwater Fishing Submarine Ride b-1. Calculate the incremental IRR for the cash flows. (Do not round intermediate calculations and enter your…NPV versus IRR Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation (BRC). Both projects require an annual return of 14 percent. Deepwater Fishing -$725,000 270,000 420,000 380,000 Year 0 1 2 3 New Submarine Ride -$1,450,000 820,000 650,000 540,000 As a financial analyst for BRC, you are asked the following questions: a. If your decision rule is to accept the project with the greater IRR, which project should you choose? b. Because you are fully aware of the IRR rule's scale problem, you calculate the incremental IRR for the cash flows. Based on your computation, which project should you choose? c. To be prudent, you compute the NPV for both projects. Which project should you choose? Is it consistent with the incremental IRR rule?Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation. Both projects require an annual return of 16 percent. Year Deepwater Fishing New Submarine Ride 0 −$ 985,000 −$ 1,920,000 1 405,000 970,000 2 538,000 835,000 3 455,000 820,000 a-1. Compute the IRR for both projects. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) IRR Deepwater Fishing % Submarine Ride % a-2. Based on the IRR, which project should you choose? Submarine Ride Deepwater Fishing b-1. Calculate the incremental IRR for the cash flows. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Incremental IRR % b-2. Based on the incremental IRR, which project should you choose? Deepwater Fishing Submarine Ride c-1. Compute the NPV for…
- Consider the following cash flows on two mutually exclusive projects for the Bahama Recreation Corporation (BRC). Both projects require an annual return of 14 percent. Year Deepwater Fishing 0 -$955,000 1 375,000 2 514,000 3 425,000 New Submarine Ride 1,860,000 910,000 805,000 760,000 a-1. Compute the IRR for both projects. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Deepwater Fishing Submarine Ride % %Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation. Both projects require an annual return of 18 percent. Year Deepwater Fishing Submarine Ride 0 −$ 1,035,000 −$ 2,020,000 1 455,000 1,070,000 2 578,000 885,000 3 505,000 920,000 a-1. Compute the IRR for both projects. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. a-2. Based on the IRR, which project should you choose? b-1. Calculate the incremental IRR for the cash flows. Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b-2. Based on the incremental IRR, which project should you choose? c-1. Compute the NPV for both projects. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. c-2. Based on the NPV, which project should you choose? c-3. Is the NPV rule consistent with…Do C3 part Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation (BRC). Both projects require an annual return of 17 percent. Year Deepwater Fishing New Submarine Ride 0 −$ 1,000,000 −$ 1,950,000 1 420,000 1,000,000 2 550,000 850,000 3 470,000 850,000 a-1. Compute the IRR for both projects. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a-2. Based on the IRR, which project should you choose? multiple choice 1 Deepwater Fishing Submarine Ride b-1. Calculate the incremental IRR for the cash flows. (Do not round intermediate calculations and…
- Consider the following cash flows on two mutually exclusive projects for the B.C. Recreation Corporation (BCRC). Both projects require an annual return of 13 percent. aw Bubmarine Ride - 51,950, D0 Year Deupvater Fishing -5530,000 230,000 1,150, D00 000 ,39ב 700, D00 250,000 790, DD0 As a financial analyst for BCRC, you are asked to answer the following questions: a-1. Calculate the IRR for both projects. (Do not round Intermediate calculations. Round the answer to 2 decimal places.) Deepvater Finhing Nuw Subnarine Ride a-2. If your decision rule is to accept the project with the greater IRR, which project should you choose? O Deepwater Fishing O New Submarine Ride b-1. Calculate the incremental IRR for the projects. (Do not round intermediate calculations. Round the answer to 2 decimal places.) Incremental IRR b-2. Because you are fully aware of the IRR rule's scale problem, you calculate the incremental IAR for the cash flows. Based on your computation, which project should you…kindly provide it on excel fileTwo mutually exclusive projects have the estimated cash flows shown. Use a present worth analysis to determine which should be selected at an interest rate of 10% per year.
