NPVS, IRRS, and MIRRS for Independent Projects Edelman Engineering is considering including two pieces of equipment, a truck and an overhead pulley system, in this year's capital budget. The projects are independent. The cash outlay for the truck is $18,000, and that for the pulley system is $22,000. The firm's cost of capital is 14%. After-tax cash flows, including depreciation, are as follows: Year 1 2 3 4 Truck Pulley $5,100 $7,500 5,100 7,500 5,100 7,500 5,100 7,500 5 5,100 7,500 Calculate the IRR, the NPV, and the MIRR for each project, and indicate the correct accept/reject decision for each. Do not round intermediate calculations. Round the monetary values to the nearest dollar and percentage values to two decimal places. Use a minus sign to enter negative values, if any.

Company is evaluating two projects, Project A and Project B. The initial investment on both the projects are $25,000. Both have equal lives. The Project A will generate cash flows of $20,000 and $35,000 in year 2 and year 3. The Project B will generate $15,000 in yea- 1, $22,000 year-2, and $25,000 in year-3. Compute the incremental (B-A) IRR. а. -21.38% b. 56.80% с. 21.38% d. -24.75%

Nicholson Roofing​ Materials, Inc., is considering two mutually exclusive​ projects, that both cost ​$100,000. The company's board of directors has set a​ 4-year payback requirement the cost of capital is 10​%. The project cash flows are shown in the following​ table:      Cash flows ​(CF Subscript t​) Year Project A Project B 1 ​$30,000 ​$85,000 2 ​$30,000 ​$50,000 3 ​$30,000 ​$10,000 4 ​$30,000 ​$10,000 5 ​$30,000 ​$10,000 6 ​$30,000 ​$10,000 a. Calculate the payback period for each project. Rank the projects by payback period. b.  Calculate the NPV of each project. Rank the project by NPV. c.  Calculate the IRR of each project. Rank the project by IRR. d.  Make a recommendation.

A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation, are as follows: 0 1 + 2 + -Select- % Project M -$6,000 $2,000 $2,000 $2,000 $2,000 $2,000 Project N -$18,000 $5,600 $5,600 $5,600 $5,600 $5,600 a. Calculate NPV for each project. Do not round intermediate calculations. Round your answers to the nearest cent. Project M: $ Project N: $ Calculate IRR for each project. Do not round intermediate calculations. Round your answers to two decimal places. Project M: Project N: Calculate MIRR for each project. Do not round intermediate calculations. Round your answers to two decimal places. Project M: Project N: Calculate payback for each project. Do not round intermediate calculations. Round your answers to two decimal places. Project M: Project N: years Calculate discounted payback for each project. Do not round intermediate calculations. Round your answers to two decimal places. Project M: Project N: years b. Assuming…

he cash flows associated with a public works project in Buffalo, New York, are shown. Use the modified B/C ratio at a discount rate of 5% per year to determine the economic justification.   First cost, $ 30,000,000 AW of benefits, $/year 7,700,000 AW of disbenefits, $/year 1,700,000 M&O costs, $/year        1,525,000 Life of project, years 30   The modified B/C ratio is  . The project is economically         (Click to select) justified not justified  .

Cash PaybackAnderson Company must evaluate two capital expenditure proposals. Anderson's hurdle rate is 12%. Data for the two proposals follow.   Proposal X Proposal Y Required investment $540,000 $540,000 Annual after-tax cash inflows 54,000   After-tax cash inflows at the end of years 3, 6, 9, and 12   136,000 Life of project 12 years 12 years What is the cash payback period for Proposal X? For Proposal Y? Hint: For Proposal Y, in what year (3, 6, 9 or 12) will the full original investment be recovered? Round Proposal X answer to one decimal place, if applicable. Proposal X Answer    years   Proposal Y Answer    years

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30) Vanzant Corporation has provided the following information concerning a capital budgeting project: After-tax discount rate Tax rate Expected life of the project $ 240,000 Investment required in equipment Salvage value of equipment $0 $ 20,000 Working capital requirement Annual sales. $ 540,000 Annual cash operating expenses $ 380,000 One-time renovation expense in year 3 $ 70,000 The working capital would be required immediately and would be released for use elsewhere at the end of the project. The company uses straight-line depreciation on all equipment. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting. You may determine the appropriate discount factor(s) using tables Or, use excel. The net present value of the entire project is closest to: 6% 30% 4 A) $149,290 B) $251,440 C) $165,130 D) $231,000

A firm with a 14% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation, are as follows: 1 2 3 4 5 Project M -$15,000 $5,000 $5,000 $5,000 $5,000 $5,000 Project N -$45,000 $14,000 $14,000 $14,000 $14,000 $14,000 a. Calculate NPV for each project. Do not round intermediate calculations. Round your answers to the nearest cent. Project M: $ Project N: $ Calculate IRR for each project. Do not round intermediate calculations. Round your answers to two decimal places. Project M: Project N: % % Calculate MIRR for each project. Do not round intermediate calculations. Round your answers to two decimal places. Project M: % Project N: % Calculate payback for each project. Do not round intermediate calculations. Round your answers to two decimal places. Project M: Project N: years years Calculate discounted payback for each project. Do not round intermediate calculations. Round your answers to two decimal places. Project M: Project N: years…

A firm with a 13% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including yearly depreciation, are as follows: Project M -$6,000 $2,000 $2,000 $2,000 $2,000 $2,000 Project N -$18,000 $5,600 $5,600 $5,600 $5,600 $5,600   Calculate discounted payback for each project. Do not round intermediate calculations. Round your answers to two decimal places. Project M:      years Project N:      years