Go Electric is an EV (Electric vehicle) company in China that is considering investing in the brand- new 2-seater luxury racing car market with cash flow (A) or upgrading their 7-seater family car model to full EV with cash flow (B) as follows: Year Cash Flow (A) Cash Flow (B) 0 -$170,000 -$18,000 1 10,000 10,000 2 25,000 6,000 3 25,000 10,000 4 380,000 8,000 The company has an internal rate of return of 15 percent requirement, REQUIRED: [All calculations should be carried out in two decimals in percentages, i.e., four decimals.] (a) If you apply the payback criterion, which investment will you choose? Why? (2 marks) (b) If you apply the discounted payback criterion, which investment will you choose? Why? (2 marks) (c) If you apply the NPV criterion, which investment will you choose? Why? (2 marks) (d) If you apply the IRR criterion, which investment will you choose? Why? (2 marks) (e) Based on your answers in (a) through (d), which project will you finally choose? Why? (2 marks)

A company is considering two mutually exclusive investments with a discount rate of 10%.The cash flows of the projects over time follows:  Time Project A Project B 0 - RM300,000 - RM405,000 1 - RM387,000 RM134,000 2 - RM193,000 RM134,000 3 - RM100,000 RM134,000 4 RM600,000 RM134,000 5 RM600,000 RM134,000 6 RM850,000 RM134,000 7 - RM180,000 RM0 Net Present value given :       Time Project A Project B   Project A Project B 0 -300,000 -405,000 1.0000   (300,000.00)   (405,000.00) 1 -387,000 134,000 0.9091   (351,818.18)     121,818.18 2 -193,000 134,000 0.8264   (159,504.13)     110,743.80 3 -100,000 134,000 0.7513     (75,131.48)     100,676.18 4 600,000 134,000 0.6830    409,808.07       91,523.80 5 600,000 134,000 0.6209    372,552.79       83,203.46 6 850,000 134,000 0.5645    479,802.84       75,639.51 7 -180,000 0 0.5132…

Anderson International Limited is evaluating a project in Erewhon. The project will create the following cash flows: Year Cash Flow -$590,000 O 1 2 3 4 220,000 163,000 228,000 207,000 All cash flows will occur in Erewhon and are expressed in dollars. In an attempt to improve its economy, the Erewhonian government has declared that all cash flows created by a foreign company are "blocked" and must be reinvested with the government for one year. The reinvestment rate for these funds is 7 percent. Assume Anderson uses a required return of 13 percent on this project. a. What is the NPV of the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the IRR of the project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

ou are preparing to produce some goods for sale. You will sell them in one year and you will incur costs of $ 76,000 immediately. If your cost of capital is 7%.  What is the minimum dollar amount you need to sell the goods for in order for this to be a​ non-negative NPV?       Question content area bottom Part 1 The minimum dollar amount is ​$XXX enter your response here .

The Tech company. Inc. is currently making windfall profits from the sales of financial programming software, so the company is looking for new investment opportunities to invest the profits and maintain its growth. The firm decided to undertake one of these two projects. Project A: invest in the development and improvement of the already existing software (create a new version) Project B: launch into the manufacture of computer equipment (external hard drives) The cash flow projections for the two projects are as follows:   0 1 2 3 4   I0 FM1 FM2 FM3 FM4 Project A 100,000 60,000 40,000 30,000 20,000 Project B 350,000 60,000 100,000 130,000 160,000 The rate of return required by senior management is 10% 1. Calculate simple payback period and discounted payback period, and give your recommendation, if the maximum period acceptable to senior management is 3 years? 2. Calculate the NPV (net present value) of each project and give…