Kara, Incorporated, imposes a payback cutoff of three years for its international investment projects. Assume the company has the following two projects available. Year Cash Flow (A) е -$ 47,000 Cash Flow (B) -$ 92,000 62331 4 18,000 24,200 20,000 6,000 20,000 25,000 34,000 248,000 a. What is the payback period for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. Which, if either, of the projects should the company accept? a. Project A Project B b. Project acceptance

Duo Corporation is evaluating a project with the following cash flows: Year 0 1 2 3 4 5 Cash Flow -$ 15,300 6,400 7,600 7,200 6,000 -3, 400 The company uses an interest rate of 9 percent on all of its projects. Calculate the MIRR of the project using all three methods. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. Discounting approach Reinvestment approach Combination approach % % %

Badr & Sons. is evaluating 2 (TWO) mutually exclusive investment projects. INITIAL CAPITAL OUTLAY for both projects are as stated in Year 0. The company’s REQUIRED RATE OF RETURN IS 10.50% and sets 2.5 YEARS AS ITS MINIMUM (DESIRED) PAYBACK PERIOD.   Information about cash flows from the project for the next four years is tabulated below:   YEAR PROJECT ALPHA PROJECT BETA 0 SR               -185,000 SR           -145,000 1                        45,000                     41,000 2                        75,000                     45,000 3                        55,000                     55,000 4                        66,000                     70,000   What is PAYBACK PERIOD for PROJECT ALPHA ONLY.?

Monroe, Inc., is evaluating a project. The company uses a 13.8 percent discount rate for this project. Cost and cash flows are shown in the table. What is the NPV of the project? Year0    ($11,368,000)1   $2,112,5892    $3,787,5523     $3,300,6504     $4,115,8995.     $ 4,556,424 Round to two decimal places. For year 0 , its initial investment .

The Carlo Company has been allocated RM600,000 on investment projects for the coming year. Four projects, each with a four year life and with the following cash flows are currently being considered:     Year 0 1 2 3 4 Project RMk RMk RMk RMk RMk A -300 100 10 200 200 B -200 0 0 0 400 C -100 0 0 80 80 D -150 60 60 60 60     Distinguish between hard and soft capital rationing                         Assuming that the projects are divisible recommend to the Board, which projects should be accepted using the Net Present Value method and evaluate the total net present value that would be generated Discuss the impact on your analysis of each project being indivisible

es Andouille Spices, Incorporated, has the following mutually exclusive projects available. The company has historically used a three-year cutoff for projects. The required return is 14 percent. Year 0 Project F -$ 138,000 Project G -$ 208,000 12345 58,500 38,500 51,500 53,500 61,500 91,500 4 56,500 121,500 51,500 136,500 a. Calculate the payback period for both projects. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. Calculate the NPV for both projects. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. c. Which project, if any, should the company accept? a. Project F Project G b. Project F C. Project G Project G years years

Mansukhbhai

1. Kara, Incorporated, imposes a payback cutoff of three international investment projects. Year Cash Flow (A)Cash Flow (B) -$ 73,000 0 1 2 3 4 $63,000 24,500 31,000 22,500 9,500 16,500 19,500 29,000 233,000 What is the payback period for both projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) What is the payback period for both projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -$ 243,567 -$ 15,530 1 27,200 55,000 60,000 413,000 234 5,173 8,261 13,237 8,729 Whichever project you choose, if any, you require a 6 percent return on your investment. a. What is the payback period for Project A? Payback period

Emusk Inc. is evaluating two mutually exclusive projects. The required rate of return on these projects is 8%. Calculate the profitability index for project A. (Round to 3 decimals) Year 0 1 2 3 4 5 Project A -15,000,000 2,000,000 3,000,000 5,000,000 5,000,000 6,000,000 Project B -15,000,000 6,000,000 6,000,000 6,000,000 1,000,000 1,000,000