From the following information calculate the Net Present Value of the two projects & sugge which of the two projects should be accepted assuming a discount rate of 10%. Project Y Rs. 30,000 5 years Rs. 2,000 Project X Initial Investment Rs. 20,000 Estimated Life 5 years Scrap Value Rs. 1,000 The profits before Depreciation and after Taxes (Cash flows) are as follows: Project Y Rs. 20,000 Rs. 10,000 Rs. 5,000 Rs. 3,000 Rs, 2,000 Project X Rs. 5,000 Year I Year 2 Rs. 10,000 Rs. 10,000 Rs. 3.000 Year 3 Year 4 Year 5 Rs, 2,000

Newland Company is considering investing in one of two projects – A or B. The initial cost and net cash inflows from each project are shown below. The discount rate for both projects is 18% per cent. Cash Flow Project A Project B   $ $ Initial Cost 3,000,000 3,500,000 Net Cash Inflows     Year 1 800,000 1,000,000 Year 2 800,000 1,000,000 Year 3 1,200,000 700,000 Year 4 1,200,000 800,000 Year 5 1,200,000 800,000   Year Factor 1 0.8475 2 0.7182 3 0.6086 4 0.5158 5 0.4371 Discount factors for the projects @18% per annum are as follows:         Required: Calculate the payback period for each project and identify the project in which the company should invest, giving ONE reason for your choice.                        Calculate the Accounting Rate of Return on initial capital for each project

What is the NPV of the following project if the discount rate is 11%? Round to the nearest cent.Investment today: $-121,000; Cash flow in year 1: $66,000; Cash flow in year 2: $72,000; Cash flow in year 3: $66,000

Consider the following two mutually exclusive projects: Year Cash Flow(A) -$ 63,000 39,000 33,000 22,500 14,600 Cash Flow(B) -$ 63,000 25,700 29,700 35,000 24,700 4 1-What is the IRR for each project? Project A Project B % % 2.IF you apply the IRR decision rule, which project should ti 3.Assume the required return is 14 percent. What is the NP Project A Project B 0123

Calculate the payback period, the discounted payback period and the NPV for the following project using a rate of 5%.                                                                                                          Time            Cash Flow                 0  - $53,000    1                                        $  21,000 2                                        $  21,000 3                                        $  21,000   NPV =   Payback =                                                               Discounted Payback =

Calculate the payback period, the discounted payback period and the NPV for the following project using a rate of 5%.                                                                                                                     Time                    Cash Flow                        0  - $63,000        $ 21,000 $ 21,000 $ 21,000 $ 21,000   Payback =                                                                   Discounted Payback =

Consider the cash flows for the following investment projects: (a) For Project A. find the value of X that makes the equivalent annual receiptsequal the equivalent annual disbursement at i = 13%.(b) Would you accept Project Bat i = 15% based on the AE criterion?

Duo Corporation is evaluating a project with the following cash flows: Year    Cash Flow0    −$ 29,8001    12,0002    14,7003    16,6004    13,7005    −10,200 The company uses an interest rate of 9 percent on all of its projects. Calculate the MIRR of the project using the discounting approach.

Mendez Company has identified an investment project with the following cash flows.      Year Cash Flow 1 $ 810 2 1,110 3 1,370 4 1,500    a. If the discount rate is 11 percent, what is the present value of these cash flows?  b. If the discount rate is 17 percent, what is the present value of these cash flows?  c. If the discount rate is 25 percent, what is the present value of these cash flows?

3) Consider the following two projects:   Net Cash Flow Each Period Initial Outlay 1 2 3 4 Project A  $4,000,000 $2,003,000 $2,003,000 $2,003,000 $2,003,000 Project B   $4,000,000 0 0 0 $11,000,000   Calculate the net present value of each of the above projects, assuming a 14 percent discount rate. What is the internal rate of return for each of the above projects? Compare and explain the conflicting rankings of the NPVs and IRRs obtained in parts a and b above. If 14 percent is the required rate of return, and these projects are independent, what decision should be made? If 14 percent is the required rate of return, and the projects are mutually exclusive, what decision should be made?