The following information relates to three possible capital expenditure projects. Because of capital rationing only one project can be accepted.   Project A  Project B  Project C Initial Cost      240,000.00     260,000.00     200,000.00 Expected life  5 5 4 Scrap value expected        10,000.00       15,000.00       10,000.00 Expected Cash Inflows:       End Year 1        85,000.00       95,000.00       45,000.00 End Year 2        70,000.00       70,000.00       65,000.00 End Year 3       65,000.00       55,000.00       95,000.00 End Year 4       60,000.00       50,000.00     100,000.00 End Year 5       50,000.00       50,000.00   The company estimates cost of capital is 18%. The table below shows the present value of $1 at 14%, 18% and 22%. Periods  14% 18% 22% 1 0.877 0.847 0.820 2 0.769 0.718 0.672 3 0.675 0.609 0.551 4 0.592 0.516 0.451 5 0.519 0.437 0.370 6 0.456 0.370 0.303 Required: Calculate:(b) The accounting rate of return for each project

Given the data in the following table, what is the IRR of Project B?

Compute the IRR statistic for Project E. The appropriate cost of capital is 8 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.)  Project E             Time: 0 1 2 3 4 5 Cash flow −$1,900 $710 $750 $700 $480 $280       Should the project be accepted or rejected?multiple choice accepted rejected

A company has two projects that are under evaluation. The project investment costs, annual projected cash flows, and required rates of return are shown below:   Project 1 Project 2 Rate of Return: 0.065 0.065 Project Cost: -$1,397,654 -$1,619,835 Year 1 $245,367 $267,345 Year 2 $302,542 $343,563 Year 3 $316,543 $367,834 Year 4 $367,843 $432,098 Year 5 $450,425 $589,435 Compute the NPV for each project using Microsoft Excel NPV's function. Be sure to show your work. Which project should be pursued? Why?

Compute the payback statistic for Project A if the appropriate cost of capital is 7 percent and the maximum allowable payback period is four years. (Round your answer to 2 decimal places.)  Project A             Time: 0 1 2 3 4 5 Cash flow: −$1,400 $510 $600 $600 $380 $180 Payback years: _______.__

1. A project has an initial cost of 40,000. The future cash flows are 5,500, 15,200, -3,600, and 32,000 for year 1 to 4 respectively. How many IRRs will this project have? a. 3 b. 1 c. 4 d. 0

An investment project provides cash inflows of $950 per year for eight years. a. What is the project payback period if the initial cost is $3,450? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. What is the project payback period if the initial cost is $4,500? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. What is the project payback period if the initial cost is $8,600? (Enter 0 if the project never pays back. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

The cost of capital for Project J is 10%. Compute the rate of return statistic for this project using appropriate capital budgeting technique. (Do not round intermediate calculations, Enter your answer in percentage and round your final answer to 2 decimal places.) Time: Cash flow: 1 -$2,500 $800 0 2 $2,230 3 -$670 4 $750 5 -$250

What is the minimum cash flow that could be received at the end of year 3 to make the following project "acceptable"? Initial cost = $100,000; cash flows at end of years 1 and 2 = $35,000; opportunity cost of capital = 8% a) $39,256.2 b) $47,347.2 c) $29,494.5 d) $37,250.5

Compute the IRR statistic for Project F. The appropriate cost of capital is 12 percent. Note: Do not round intermediate calculations and round your final answer to 2 decimal places. Project F Time: 01234 Cash flow: -$11,000 $ 3,350 $ 4,180 $ 1,520 $2,000 Should the project be accepted or rejected?