еВook Problem Walk-Through A company has a 12% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 1 3 4. 6. 7 Project A -$300 -$387 -$193 -$100 $600 $600 $850 -$180 Project B -$400 $133 $133 $133 $133 $133 $133 $0 a. What is each project's NPV? Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent. Project A: $ -178.94 Project B: $ -131.09
Q: A).What is the inventory for zooey corporation B).what is the notes payable for zooey corporation in...
A: Calculation of Inventory. Inventory Turnover = Cost of goods sold/ Inventory. Cost of goods sold= Sa...
Q: 3. Attach a complete solution. Oraw the cash flow diagram. A manufacturing plant installed a new boi...
A: Capitalized cost On the cash balance of a company, a capitalised cost is a cost that is added to t...
Q: Which of the following are characteristics of the gift-splitting technique? A)If the spouses divorc...
A: Gift tax is levied by the tax authorities on the transfer of property with less or no consideration....
Q: 585477&cmid=D123356848&page%3D20 Abercrombie Company uses four special journals: Purchases, Sales, C...
A: The question is related to Journal entries. The company uses four special journal to recors the tran...
Q: Mauro Products distributes a single product, a woven basket whose selling price is $12 per unit and ...
A: Formula: Break even point in Unit sales = Fixed cost / Unit Contribution margin
Q: Helsinki Inc. produces premium bottled water. Helsinki purchases artesian water, stores the water in...
A: The question asks to compute the ending WIP on December 31 : where , ending WIP = Ending work in pro...
Q: 3) Misnap is a manufacturing firm. In April, it had a beginning inventory balance in its raw materia...
A: Formula: Raw materials used = Beginning inventory + Purchases - Ending inventory
Q: Mr. John started a T-shirts business to be known as “John T-shirts". He has provided you with the fo...
A: Current assets are those assets which are held by an entity or enterprise with the purpose of conver...
Q: For a manufacturing entity, which of the following is treated as business expense? a. Raw materials...
A: Business expense are the costs incurred by the company for operating the business. Manufacturing ent...
Q: There are 2 types of residents in town. 20% are financially stable who can pay back the loan they bo...
A: Breakeven means a point of balance making neither profit nor loss. If amount is below point then it...
Q: ZYK company makes its policy that for every new equipment purchased, the annual depreciation should ...
A: Under double declining balance method,. Depreciation is charged at double the rate under straight li...
Q: View Policies Current Attempt in Progress Flint Corporation issued 1,900 shares of stock. Prepare th...
A: Stock issue is the main source of capital for every company. They may issue as many shares as have b...
Q: Your examination of Sullivan Company’s records provides the following information for the December 3...
A: The practice of recording financial activity for the first time in the accounting records is known a...
Q: Prepare the necessary journals for the given transactions 1. Cash paid to Sara BD 600 2. Sold Furnit...
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...
Q: Calculate Eric’s capital gain for the year of assessment 2021/22 after the annual exemption and the ...
A: During the year ended 5 April 2022 Eric (a higher rate taxpayer) disposed of some of his assets. Let...
Q: Boriales Company provided the following transactions relating to its raw materials inventory during ...
A:
Q: Which is not a step in analyzing the cost driver for manufacturing overhead?A. identify the costB. i...
A: All indirect expenses involved during in the manufacturing process are referred to as manufacturing ...
Q: E17.23 (LO 4) (Impairment) Elaina Ce investment as of December 31, 2022: Investment in debt securiti...
A: I am answering the sub-part (d) of the question as specified by the student. Journal is the book of ...
Q: An entity provided the following records connected to its inventory transactions: Date and transacti...
A: Inventory Valuation: The valuation of inventory can be done by using various inventory methods like ...
Q: You were assigned to audit the Property, plant and equipment account of your continuing audit client...
A: The correct initial cost is the amount paid at the time of purchase of an asset and the present valu...
Q: An entity has the following owner's equity, drawings and assets: Capital N$120 000; withdrawals N$25...
A: Total assets = Total liabilities + Net capital where, Net capital = Capital - withdrawals
Q: 1. The following information is obtained from a review of the record keeping process. Analyze the gi...
A: The question is related to modified trial Balance as on December 31st, 2021. The unbalanced trial B...
Q: The owner invests N$150 000 cash in the entity. Service rendered for cash N$5 000. Salaries and elec...
A: Here in this question, we are required to calculate current worth of owner's investment. For calcula...
Q: 7) When a person does an internal search for product information and already has sufficient informat...
A:
Q: company has three shops (R, S and T) to which the following budgeted information relates: Sixty ...
A: Budget will help to find any mistakes in planning, hence a business can take corrective measures and...
Q: Decker Screw Manufacturing Company produces special screws made to customer specifications. During J...
A: 1) Job 2906 Job 2907 Job 2908 Direct material 4950 x 1.30 =6435 190 x 22 = 4180 1160x...
Q: Standard Company purchased a machine on January 1, 2009 for P500,000. At the time, it was determined...
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets ...
Q: Which type of incurred costs are not relevant in decision-making (i.e., they have no bearing on futu...
A: Cost accounting is one of the branch of accounting. Under this, various type of costs are being calc...
Q: Whichofthefollowingstatementsis(are)correct?
A: A tax system is the system which has been put in place by the government in the country to collect t...
Q: XYZ manufactures a computer stand. It has fixed costs of $600,000 and each stand sells for $90, with...
A: Formula: Contribution margin per unit = Sales price per unit - Variable cost per unit
Q: y paid t
A: Given Information Office Equipment was acquired at the beginning of 2019. Depreciation on Straight...
Q: 45. A truck initially cost P60,000. Its resale value at the end of the 5th year of the useful life i...
A: Double declining depreciation rate = 2 * depreciation rate Depreciation rate = 1 / useful life
Q: A company had net income of $282,000. Depreciation expense is $26,000. During the year, accounts rec...
A: Introduction: Statement of cash flows: All cash in and out flows are shown in cash flow statements. ...
Q: Garcia Company rents out a portion of its building to Jerry Company for $1,000 per month. On August ...
A: Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized i...
Q: Use the following information to calculate total ending cash and equivalents: Beginning Cash and Equ...
A: Introduction: Statement of cash flows: All cash in and out flows are shown in cash flow statements. ...
Q: Given the constant profit margin of 25%, determine the primary or net income for each SKU. Type your...
A: Net sales = Quantity sold - Returns from customers Net income = Net sales x Selling price x Profit ...
Q: P30,000 at the end of the per vears using sinking fund met
A: This is a multiple-choice question in which we have to select the correct option.
Q: Match the following in the correct order.
A: Check- reminder of what the check was payment for Numerical amount- written number in box Written ...
Q: Required: Record the following transactions of Allen Inc.: (Round your answers to 2 decimal places.)...
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal....
Q: Borlales C any provided the following transactions relating to its raw materials inventory during th...
A: FIFO Method: FIFO Method is one of the technique of inventory evaluation which follows the principle...
Q: onstant percent 8 years. 8.25%; BV 30 0.10; BV = 293 3.25%; BV = 29 0 109% RV
A: The constant percentage method is also called as declining balance method which evaluates the deprec...
Q: at a company have strong internal cont
A: The internal controls help us to ensure that the financial statements are correct.
Q: chased and used cost $105,000, and two units of raw material are required lo produce OR wember, the ...
A: Materials price Variance = (Standard price per unit of Raw Materials - Actual price per unit of Raw ...
Q: FINANCIAL POSITION AS AT 31ST DECEMBER 2020 RM('000) RM('000) Non- Curent Assets Property, plant and...
A: An accounting ratio is a comparison of two or more financial data that is used to analyze a company'...
Q: Tamarisk is unable to reconcile the bank balance at January 31. Tamarisk’s reconciliation is as foll...
A: We should reduce NSF check and bank charges to get adjusted cash balance.
Q: PROBLEM SOLVING: The following balances were taken from the book of TIWALA-LANG Partnership as of Ju...
A: Solution Liquidation is the process by which an entity converts its assets to cash or other assets a...
Q: Annual rental payable at the end of each year January 1, 2020 with the following information: Cavali...
A: Amortization Schedule is the tabular statement that shows the payment by the lessee shall be complet...
Q: On January 1, 2019, Major purchased a machine that had an estimated useful life of six years and $5,...
A: Depreciation rate = (1 / useful life) x100 (1/6) x 100 = 16.67% 150% declining depreciation rate = ...
Q: At the end of a reporting period, a company will value its inventory under one or two methods: The l...
A: Inventory: Inventory is the raw materials or goods that are held by the business for using in pro...
Q: The three heading lines of financial statements typically include which of the following?A. company,...
A: Financial statements are those statements and reports which are prepared at the end of the period fo...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- еВook Problem Walk-Through A company has a 12% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 1 3 5 6 Project A -$300 -$387 -$193 -$100 $600 $600 $850 -$180 Project B -$400 $133 $133 $133 $133 $133 $133 $0 a. What is each project's NPV? Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent. Project A: $ Project B: $ b. What is each project's IRR? Do not round intermediate calculations. Round your answers to two decimal places. Project A: % Project B: c. What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Do not round intermediate calculations. Round your answers to two decimal places. Project A: % Project B: % d. From your answers to parts a-c, which project would be selected? -Select- If the WACC was 18%, which project would be selected? -Select-A firm is considering the following independent projects. Project Investment Present value offuture cash flows NPV A $130 $176 $46 B $103 $115 $12 C $183 $287 $104 D $161 $199 $38 E $184 $273 $89 What is the Profitability Index of Project B? Question 5Answer a. 0.85 b. 1.12 c. 0.89 d. 1.18cash flows, what is project Beta's NPV? O -$947,867 $1,277,133 A-Z O -$497,867 dofice O -$522,867 Making the accept or reject decision Hungry Whale Electronics's decision to accept or reject project Beta is independent of its decisions on other projects. If the firm follows the NPV method, it should project Beta. Suppose your boss has asked you to analyze two mutually exclusive projects-project A and project B. Both projects require the same investment amount, and the sum of cash inflows of Project A is larger than the sum of cash inflows of project B. A coworker told you that you don't need to do an NPV analysis of the projects because you already know that project A will have a larger NPV than project B. Do you agree with your coworker's statement? O Yes, project A will always have the largest NPV, because its cash inflows are greater than project B's cash inflows. O No, the NPV calculation is based on percentage returns, so the size of a project's cash flows does not affect a…
- The answers of a-d already existed still need to find the other questions Question A company has a 12% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: Project A -$300 -$387 -$193 -$100 $600 $600 $850 -$180 Project B -$400 $135 $135 $135 $135 $135 $135 $0 a. What is each project's NPV?project A :$200.41project B :$155.04b. What is each project's IRR?project A :18.10%project B :24.83%c. What is each project's MIRR?project A :15.1%project B :17.4% d. From your answers to Parts a, b, and c, which project would be selected?If the WACC was 18%, which project would be selected? Already answerede. Construct NPV profiles for Projects A and Bdiscount rate NPV PLAN B. NPV PLAN B Discount Rate NPV Project A NPV Project B 0% $ $ 5 10 12 15 18.1 24.83 Formula:f. Calculate the crossover rate where the two projects' NPVs are equal.Formula:g. What is each project's MIRR at…Yoga Center Inc. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's NPV? Note that a project's expected NPV can be negative, in which case it will be rejected. 11.00% 0 r Year Cash flows a. $167.41 Ob. $147.23 O c. $90.02 O d. $196.23 O e. $177.40 -$1,200 1 $475 2 $450 3 $425 4 $400MIRR and NPV Your company is considering two mutually exclusive projects, X and Y, whose costs and cash flows are shown below: Year Y -$5,000 -$5,000 1 1,000 4,500 2 1,500 1,500 2,000 1,000 4 4,000 500 The projects are equally risky, and their cost of capital is 15%. You must make a recommendation, and you must base it on the modified IRR (MIRR). Calculate the two projects' MIRRS. Do not round intermediate calculations. Round your answers to two decimal places. Project X: % Project Y: % Which project has the higher MIRR? -Select- v has the higher MIRR.
- Consider projects Alpha and Beta: Cash Flows ($) Project C0 C1 C2 IRR (%) Alpha −384,000 247,000 268,994 22 Beta −194,000 134,000 142,000 27 The opportunity cost of capital is 8%. Suppose you can undertake Alpha or Beta, but not both. Use the IRR rule to make the choice. (Hint: What’s the incremental investment in Alpha?)Which project did you choose?multiple choice Alpha BetaValue/other investment criteria (i Saved Help Save Consider the following two projects: Cash flows Project A Project B -$270 CO -$270 С1 115 143 C2 115 143 Сз 115 143 C4 115 a. If the opportunity cost of capital is 10%, which of these two projects would you accept (A, B, or both)? b. Suppose that you can choose only one of these two projects. Which would you choose? The discount rate is still 10%. Which one would you choose if the cost of capital is 15%? d. What is the payback period of each project? e. Is the project with the shortest payback period also the one with the highest NPV? f. What are the internal rates of return on the two projects? g. Does the IRR rule in this case give the same answer as NPV? h-1. If the opportunity cost of capital is 10%, what is the profitability index for each project? h-2. Is the project with the highest profitability index also the one with the highest NPV? h-3. Which measure should you use to choose between the projects? Complete this question by…Consider the following projects: Cash Flows ($) Project D E CO00 C101 -11,700 23,400 -21,700 37,975 Assume that the projects are mutually exclusive and that the opportunity cost of capital is 12%. a. Calculate the profitability index for each project. b-1. Calculate the profitability-index using the incremental cash flows. b-2. Which project should you choose?
- Consider projects Alpha and Beta: Cash Flows ($) Project C0 C1 C2 IRR (%) Alpha −398,000 259,000 188,991 9 Beta −193,000 140,000 82,000 11 The opportunity cost of capital is 8%. Suppose you can undertake Alpha or Beta, but not both. Use the IRR rule to make the choice. (Hint: What’s the incremental investment in Alpha?) Which project did you choose?A company has a 12% WACC and is considering two mutually exclusive Investments (that cannot be repeated) with the following cash flows: 0 1 2 3 4 5 6 7 + + + + + + ㅓ Project A Project B -$300 -$405 -$387 $133 -$193 -$100 $133 $133 $600 $133 $600 $133 $850 -$180 $133 $0 a. What is each project's NPV? Negative values, if any, should be indicated by a minus sign. Do not round Intermediate calculations. Round your answers to the nearest cent. Project A: $ Project B: $ b. What is each project's IRR? Do not round intermediate calculations. Round your answers to two decimal places. Project A: Project B: % % c. What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Do not round intermediate calculations. Round your answers to two decimal places. Project A: Project B: % % d. From your answers to parts a-c, which project would be selected? -Select- If the WACC was 18%, which project would be selected? -Select- e. Construct NPV profiles for Projects A and B. If an…Start with the partial model in the file Ch10 P23 Build a Model.xlsx on the textbooks Web site. Gardial Fisheries is considering two mutually exclusive investments. The projects expected net cash flows are as follows: a. If each projects cost of capital is 12%, which project should be selected? If the cost of capital is 18%, what project is the proper choice? b. Construct NPV profiles for Projects A and B. c. What is each projects IRR? d. What is the crossover rate, and what is its significance? e. What is each projects MIRR at a cost of capital of 12%? At r = 18%? (Hint: Consider Period 7 as the end of Project Bs life.) f. What is the regular payback period for these two projects? g. At a cost of capital of 12%, what is the discounted payback period for these two projects? h. What is the profitability index for each project if the cost of capital is 12%?
