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Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Consider the following projects:
Project | C0 | C1 | C2 |
---|---|---|---|
A | −$ 2,100 | +$ 2,000 | +$ 1,200 |
B | −2,100 | +1,440 | +1,728 |
-
Calculate the profitability index for A and B assuming a 22%
opportunity cost of capital.Note: Do not round intermediate calculations. Round your answers to 4 decimal places.
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- 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.)arrow_forwardCompute 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?arrow_forwardQUESTION 3 If the cash flows for Project M are CO= -2,000; C1 = +400; C2 = +1,400; and C3= +1,300, calculate the IRR for the project. Please input the percentage format for your answer. And there is no need to put the percentage sign (%).arrow_forward
- Compute the NPV for Project M if the appropriate cost of capital is 8 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project M Time: 0 1 2 3 4 5 Cash flow: −$3,100 $710 $840 $880 $960 $460 Should the project be accepted or rejected?multiple choice rejected acceptedarrow_forwardCompute the Pl statistic for Project Q if the appropriate cost of capital is 12 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Project Q Time: 1 4. Cash flow: -$11,300 $3,500 $4,330 $1,670 $2,300 PI Should the project be accepted or rejected? O rejected O accepted ... MacBook Airarrow_forwardCompute the IRR statistic for Project E. The appropriate cost of capital is 9 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 −$3,500 $1,150 $1,080 $920 $700 $500 Should the project be accepted or rejected?multiple choice rejected acceptedarrow_forward
- Subject: acountingarrow_forwardJust need b-1, d-1, and e-1 answered.arrow_forwardCompute the PI statistic for Project Q if the appropriate cost of capital is 12 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Project Q Time: 0 1 2 3 4 Cash flow: −$12,200 $3,950 $4,780 $2,120 $2,750 MIRR: ?%Should the project be accepted or rejected?multiple choice rejected acceptedarrow_forward
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