Information on four investment proposals is given below:Investment ProposalA B C DInvestment required ........................ $(90,000) $(100,000) $(70,000) $(120,000)Present value of cash inflows ......... 126,000 138,000 105,000 160,000Net present value ............................ $ 36,000 $ 38,000 $ 35,000 $ 40,000Life of the project ............................ 5 years 7 years 6 years 6 yearsRequired:1. Compute the project profitability index for each investment proposal.2. Rank the proposals in terms of preference.

Vishu

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.)

Compute the payback perlod for an Investment with the following net cash flows. (Round your answer to one decimal place.) Net Cash Flows per Year Cumulative Net Cash Flows $ (101,000) $ (101,000) (90,900) (70,800) Year Initial investment 1. 2. 3. 5. 6. Payback period 10,100 20,100 20,100 26,640 40,100 40,100 years (50,700) (24,060) 16,040 56,140

Pls show proper steps correctly with explanation.

Net Cash Flows and NPVs for different discount rate for projects S and L are given below     Net Cash Flows ($)   Discount Rate (%) NPVS NPVL Year (t) Project S Project L   0% $800 $1100 0 $(3000) $(3000)   5   554.32 1 1500 400   10 161.33   2 1200 900   15 (90.74) (259.24) 3 800 1300   20 (309.03) (565.97) 4 300 1500             a) Calculate the payback period in years for the Project S and Project L  i) Payback for Project S: ii) Payback for Project L: c) Calculate NPVS for 5% and NPVL for 10%. Fill the table  i) NPVS at 5%: ii) NPVS at 10%: d) What is the IRR for S? (Write down the equation for IRR and then Use an excel worksheet to calculate IRR Equation:   Answer: e) What is the IRR for S? (Write down the equation for IRR and then Use an excel worksheet to calculate IRR  Equation:   Answer: f) What is the cross-over rate? (Write down the equation for IRR and then Use…

(Related to Checkpoint 6.6) (Present value of annuities and complex cash flows) You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment Alternatives End of Year 1 2 3 4 5 6 $ 780 A $ 19,000 19,000 19,000 19,000 19,000 B $19,000 19,000 19,000 19,000 19.000 C $19,000 95,000 a. What is the present value of investment A at an annual discount rate of 23 percent? $ 53265.99 (Round to the nearest cent.) b. What is the present value of investment B at an annual discount rate of 23 percent? (Round to the nearest cent.) ..

Mendez Company has identified an investment project with the following cash flows. Year Cash Flow 1 2 3 $780 1,050 1,310 1,425 a. If the discount rate is 8 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the present value at 17 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the present value at 25 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Present value at 8% b. Present value at 17% c. Present value at 25%

For the cash flows given below, find the ERR and evaluate the project when the external reinvestment rate is ε = 10% and MARR = 8%. EOY 0 1 23 2 3 4 5 Cash Flow -$10,000 -$2,000 $2,500 $4,000 $4,000 $4,000

Best Industries is considering an investment project that has the following cash flows:Year 0…………… $ -1,200Year 1………………. 200Year 2……………….. 200Year 3……………….. 800Year 4………………… 300The company’s discount rate for such calculations is 10%   1. For Best Industries what is the project’s IRR?a. 10.00%b. 11.92%c. 22.75%d. 8.40% 2. For Best Industries what is the NPV?a. $153b. $ -46.94c. $375.44d. $ -153.06 3. Internal rate of return is also:a. Yieldb. Rate of return c. Discount rate that makes the NPV equal to zerod. All of the above