ssume a firm has several hundred possible investments and that it wants to analyze the risk-return trade-off for portfolios of 20 projects. How should it proceed with the evaluation? How would various choices impact the company?

Please describe NPV, IRR and their relationship.     How do you evaluate each for making an investment decision?  That is, what is a favorable NPV and IRR for making an investment decision.       If you were developing a capital budgeting process at your employer, how would you prioritize your projects?     What is the NPV when IRR = WACC, IRR>WACC, and IRR<WACC?       There is a duplex for sale in Absecon for $700,000 at this time. It has 2 units that generate a total of $25,000 in gross rent. The property taxes are $4,000, commercial property insurance is $2,000, flood insurance is $1,000, and annual maintenance is $2,000. You expect to sell it in one year at a price growth of 0%. What is the NPV with a WACC of 10%.     Is the IRR greater or less than the WACC? Would you invest in this project and why?

A) Calculate the Return on Investment (ROI) for each of the portfolio. B) Based on the required rate of return, determine the Residual Income (RI)for each of the portfolio. C) If King Bhd is to choose only ONE (1) portfolio to invest in, advise the management team based of your answer in (a).   Please provide a calculation for each of them.

In a few sentences, answer the following question as completely as you can. According to the CAPM, the expected return on a risky asset depends on three components. Describe each component, and explain the role of each one in determining expected return.

Advise Flyers plc’s senior executive team on the comments made by Changying Simmonds and Travis van Riemsdyk. Your advice should include an explanation of the characteristics of investment appraisal decisions and the advantages and disadvantages of the IRR.

Sharon​ Smith, the financial manager for Barnett​ Corporation, wishes to select one of three prospective​ investments: X,​ Y, and Z. Assume that the measure of risk Sharon cares about is an​ asset's standard deviation. The expected returns and standard deviations of the investments are as​ follows: Investment Expected return Standard deviation X 17​% 7​% Y 17​% 8​% Z 17​% 9​%   a.  If Sharon were risk​ neutral, which investment would she​ select? Explain why. b.  If she were risk​ averse, which investment would she​ select? Why? c.  If she were risk​ seeking, which investments would she​ select? ​ Why? d.  Suppose a fourth​ investment, W, is available. It offers an expected return of 18​%,and it has a standard deviation of 9​%. If Sharon is risk​ averse, can you say which investment she will​ choose? Why or why​ not? Are there any investments that you are certain she will not​ choose?

Firms use several techniques to estimate risk, see Chapter 8. After describing these techniques, explain how firms incorporate risk in the investment evaluation process. Give examples of alternative ways a firm can use to estimate the cost of equity, and by extension the Weighted-Average Cost of Capital (WACC or Kw). Be specific as to the reasons firms use multiple hurdle rates when considering different investment projects.