The following information is available on two mutually exclusive projects. All numbers are in ‘000s. Project             Year 0             Year 1             Year 2             Year 3             Year 4 A                     $700                $300                $300                $400                $400 B                     $700                $600                $300                $200                $100   a: If the minimum acceptable rate of return is 10%, which project should be selected using the Net Present Value (NPV) method? Which project should be selected if the Internal Rate of Return (IRR) method is used?   b: At what cross‐over rate would the firm be indifferent between the two projects? What is the NPV for both projects at the crossover rate?   c: How much should cash flow in year 3 for project B increase or decrease in order for NPV(B) to be equal to NPV(A)?

Iggy Company is considering three capital expenditure projects. Relevant data for the projects are as follows. Annual Life of Project Investment Income Project 22A $242,800 $16,840 6 years 23A 275,000 20,680 9 years 24A 282,000 15,700 7 years Annual income is constant over the life of the project. Each project is expected to have zero salvage value at the end of the project. Iggy Company uses the straight-line method of depreciation. Click here to view PV table. (a)

Bausch Company is presented with the following two mutually exclusive projects. The required return for both projects is 13 percent. Year 01234+ Project M -$144,000 63,100 81,100 72,100 58,100 Project N -$351,000 154,500 176,000 139,500 106,000

Suppose that you found the probabilities and expected NPVs of 3 scenarios for a timing option: E(NPV)       probability $0.15             0.30 $10.35         0.50 $42              0.20 1. What is the expected NPV of the timing option? Show your work. 2. Suppose, that the expected NPV of the project if proceeding today is $14. Should the project be delayed based on your finding in part 1 or should the management implement it today? Briefly explain.

Using image: a-1. What is the payback period for each project a-2. If you apply the payback criterion, which investment will you choose? b-1. What is the discounted payback period for each project? b-2. If you apply the discounted payback criterion, which investment will you choose? c-1. What is the NPV for each project? c-2. If you apply the NPV criterion, which investment will you choose? d-1. What is the IRR for each project? d-2. If you apply the IRR criterion, which investment will you choose? e-1. What is the profitability index for each project? e-2. If you apply the profitability index criterion, which investment will you choose? f. Based on your answers in (a) through (e), which project will you finally choose?

Note: Where applicable, use the present value tables provided in APPENDICES 1 and 2 that appear after QUESTION 5. REQUIRED Use the information given below to calculate the following: 5.1 Payback Period of both projects (expressed in years, months and days) 5.2 Net Present Value of both projects 5.3 Accounting Rate of Return (on average investment) of Project Ron (expressed to two decimal places) Internal Rate of Return (IRR) of Project Hob. Your answer must include the calculation of two net present values as well as the determination of the IRR expressed to two decimal places. INFORMATION 5.4 Trendy Manufacturers is investigating the possibility of investing in one of two projects. The net cash flows for the two competing investment opportunities are as follows: Year 1 2 3 4 5 Project Ron R560 000 R500 000 R400 000 R200 000 R50 000 Project Hob R340 000 R340 000 R340 000 R340 000 R340 000 Each project requires an initial investment of R1 200 000. A scrap value of R50 000 (not included…

How would you rank the following alternative risky investment projects? Explain your answer carefully. Project L Payoff Probability Payoff Probability Payoff Probability Project K Project M 4 0.25 1 0.4 1 0.5 5 0.5 6. 0.3 6. 0.25 12 0.25 8. 0.3 8. 0.25

1. Two mutually-exclusive alternative designs shown in Table 1 are being consideredfor a cost-saving project. The minimum attractive rate of return is 10 percent peryear.   Which design alternative would you recommend? Justify your answer usingrepeatability assumption.

3e.a.Determinethe payback period for each   b.Calculatethe net present value (NPV) for each  c.Calculatethe profitability index (PI) for each project.  d.Calculatethe internal rate of return (IRR) for each   e.Basedon ALL your answers above, explain briefly which project should be Note: i just need (e) no question answer not all no need excle formula , thank you

Typed and correct answer please. I ll rate