For the four independent projects shown, one or those that will be selected using a MARR of 14% per year is if it is known that the rate of return for Project A = 14% per year, B = 12% per year, C = 15% per year, and D = 10% per Year A. Only Project C B. Projects A and C C. A project D. Can't be determined, need an incremental value

Project X has an initial investment at time O of $1,000 and it returns $250 one year from now and$1,000 two years from now. Project Y has an initial investment at time O of $2,000 and it returns$2,534.40 two years from now. The risk level and the net present values of the two projects areequal. Calculate the required return for project X.   Answer: 12%   please do not solve with excel

A firm requires a payback period of 2 years or less. According to the payback period rule, which of the following projects is acceptable to this firm? Year Project A Project B Project C 0 -$86 -$128 -$77 1 30 40 100 2 40 20 -50 3 50 10   4 60 130     a.  If you use payback period as a decision rule, you would choose  (No answer given)   Project A Project B Project C

A2. (PaybackandNPV)Threeprojectshavethecashflowsgivenhere.Thecostofcapitalis10%. a. Calculate the paybacks for all three projects. Rank the projects from best to worst based on their paybacks. Calculate the NPVs for all three projects. Rank the projects from best to worst based on their NPVs c. Why are these two sets of rankings different? YEAR              0   1   2   3   4     5Project 1     −10  4   3   2   1     5 Project 2      −10 1   2   3    4    5 Project 3      −10 4   3   2    1   10

(c) Compute the annual rate of return for each project. (Hint: Use average annual net income in your computation.) (Round answers to 2 decimal places, e.g. 10.50%.) Annual rate of return Project Bono % Project Edge % Project Clayton %

4. You have to select only one of the following projects (ie. They are mutually exclusive.) Project #1 is 4 years long and has an NPV of $140,000. Project #2 is 6 years long and has an NPV of $180,000. The required rate of return is 10%. Which project should you take using the EAA approach?

Would you accept a project where you had an initial investment of $10,000,000 but the NPV was only $10,000?   Group of answer choices A. There is not enough information B.Yes, because you will make the required return each year and the NPV in additional to the required return. C. No, the NPV is too small for such a large initial investment

Coore Manufacturing has the following two possible projects. The required return is 12 percent. Year Project Y Project Z 0 -$27,500 -$55,000 1 13,500 19,500 234 2 11,900 26,000 3 14,300 17,500 9,900 24,000 a. What is the profitability index for each project? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. Which, if either, of the projects should the company accept? a. Project Y Project Z 1.38 ง b. Project Y 3 decimal places required. Project Z c. Accept project x

The following information is available on two mutually exclusive projects. All numbers are in ‘000s. Project             Year 0             Year 1             Year 2             Year 3             Year 4 A                     $700                $300                $300                $400                $400 B                     $700                $600                $300                $200                $100   a: If the minimum acceptable rate of return is 10%, which project should be selected using the Net Present Value (NPV) method? Which project should be selected if the Internal Rate of Return (IRR) method is used?   b: At what cross‐over rate would the firm be indifferent between the two projects? What is the NPV for both projects at the crossover rate?   c: How much should cash flow in year 3 for project B increase or decrease in order for NPV(B) to be equal to NPV(A)?

A project has a NPV of +60,000 dollars at the interest rate of 8%. A NPV of -30,000 dollars is realised at an interest rate of 10%. What is the IRR when calculated using the linear interpolation method? Select the best answer from the options listed below. 9.33% b. 8.67% 9% d. 9.67% a. C.