Project A requires an upfront investment of $40 million and generates a constant $4 million every year, starting in year 1, in perpetuity. Project B requires an upfront investment of $80 million and generates a constant $6 million every year, starting in year 1, in perpetuity. What is the IRR of the cash flows of switching from project B to project A? a. 5.00 percent. b. 6.00 percent. c. 7.00 percent. d. 4.00 percent. e. 3.00 percent. cross out ✔ cross out cross out cross out cross out

Consider the investment project with the following net cash flows: What would be the value of X if the project's IRR is 25%?

Carland, Incorporated, has a project available with the following cash flows. If the required return for the project is 7.9 percent, what is the project's NPV? Year Cash Flow 0 -$ 258,000 1 66, 300 2 90, 400 3 117,800 4 70,900 5-12,000 $35, 378.61 $18, 968.78 $27, 173.69 $15, 173.69 $13,276.98

Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$425,000 44,000 62,000 79,000 540,000 -$40,000 20,400 13,300 18,600 15,400 2 4 The required return on these investments is 10 percent. a. What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. What is the IRR for each project? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) d. What is the profitability index for each project? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) e. Based on your answers in (a) through (d), which project will you finally choose? a. Project A Project B b. Project A Project B c. Project A years years % Project B % d. Project A…

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is 22 percent? Future Value and Multiple Cash Flows Wells, Inc., has identified an investment project with the following cash flows. If the discount rate is 8 LO 1 3. percent, what is the future value of these cash flows in Year 4? What is the future value at an interest rate of 11 percent? At 24 percent? Year Cash Flow $ 865 1,040 1,290 1,385 1 2 3 4

A $670 investment has the following expected cash returns: Year Net Cash Flow $500 100 200 1 2 3 Compute the internal rate of return for this project. Round your answer to two decimal places. %

The following are the cash flows of two projects: Year 0 1 2 3 4 Project A $ (220) 100 100 100 100 Project B $ (220) 120 120 120 What are the internal rates of return on projects A and B? Note: Enter your answers as a percent rounded to 2 decimal places. Project A B IRR % %

Assume a project has cash flows of -$54,300, $18,200, $37,300, and $14,300 for Years 0 to 3, respectively. What is the profitability index given a required return of 12.6 percent? 1.02 .95 .98 1.06 ☐ 1.00

A project has the following cash flows :  Year Cash Flows 0 −$ 12,100 1 5,350 2 7,720 3 5,120 4 −1,560  Assuming the appropriate interest rate is 7 percent, what is the MIRR for this project using the discounting approach?