Which of the following projects would you feel safest in accepting? Assume the opportunity cost of capital is 12% for each project.   ☐(a) “Project A” that has a small, but negative, NPV. ☐(b) “Project B” that has a positive NPV when discounted at 10%. ☐(c) “Project C” that has a cost of capital that exceeds its internal rate of return. ☐(d) “Project D” that has a zero NPV when discounted at 14%.

3. Project A and Project B are mutually exclusive. Project A has an IRR of 22.5 and Project B has an IRR of 30.8. The two projects happen to have equal net present value at a discount rate of 16.25%. The firms cost of capital is 12 percent. Explain with a graph, which project creates more value and which project should be chosen.

5. I need help with multiple choice finance home work question If a project has a NPV of zero, the project: Has a discounted payback period that is shorter than the life of the project.   Has a profitability index that is greater than one.   Should be accepted even if the firm has alternative investments with a positive NPV.   Should be rejected.   Is expected to earn a return equal to the firm's required return.

You are evaluating five investment projects. You already calculated the rate of return for each alternative investment and incremental rate of return between the two alternatives as well. In calculating the incremental rate of return, a lower cost investment project is subtracted from the higher cost investment project. All rate of return figures are rounded to the nearest integers. Investment Alternative Initial Investment ($) Rate of Return (%) Rate of Return on Incremental Investment (%) A CDE A B C D E b.Select E. c. Select B. 35,000 45,000 d. Do nothing. 50,000 65,000 80,000 12 15 13 20 18 B 28 20 36 27 12 40 22 If all investment alternatives are mutually exclusive and the MARR is 12%, which alternative should be chosen? a. Select D. 42 25 -5

If the net present value of a project is zero based on a discount rate of 16%, then the internal rate of return is: Select one: O a. equal to 16% O b. greater than 16% O c. less than 16% O d. cannot be determined from this data

You are choosing between two projects. The cash flows for the projects are given in the attached table​ ($miilion) . a. What are the IRRs of the two​ projects? (A &B) b. If your discount rate is 4.9%​,what are theNPVs of the two​ projects? (A & B) c. Why do IRR and NPV rank the two projects​ differently?

5) Brady Brand is evaluating a project with the given cash flow and weighted average cost of capital (WACC) information. Can you determine the project's modified internal rate of return (MIRR)? Keep in mind that the MIRR can be lower than the WACC, or even negative, indicating that the project is not viable and should be rejected. WACC: 10.00% Year Cash flows 0 1 -$850 $300 2 $320 3 $340 4 $360

How did you find this amount because thourgh Excel spreeshit it gives another sum Now, let's address Rhule's concern about the cost of capital being off 300 basis points (3%): If the cost of capital is off by 300 basis points (10% -3% = 7%), we would recalculate the NPV using the new discount rate of 7% and check if the project still yields a positive NPV. NPV (at 7 %) = [( $6.77 million * ((1 - (1 + 0.07)^(- 10)) / 0.07)] - $16.5 million NPV (at 7%) = [$6.77 million * (1 - 0.508) / 0.07] - $16.5 million NPV (at 7%) = [$ 6.77 million *0.492/0.07] - $16.5 million Explanation: NPV (at 7%) = $34.6512 million - $16.5 million NPV ( at 7%) = $18.1512 million With a cost of capital of 7%, the NPV of the project is still positive at $18.1512 million. This indicates that even if the cost of capital is off by 300 basis points (3%), the project remains financially feasible and attractive.:;

Hello.thank you for replying. May i ask why did u choose the cost of capital between 22 and 25%. I know u need an positive npv and a negative one. U already have a positive npv of 51,81 with 12% cost of capital. Why u didnt used that one like a positive npv and to add just one cost of capital fir a negative npv? Thank you

Which of the following statements are true? I At higher discount rate, a project is more likely to be rejected. II A project is acceptable if the IRR = 8% while the cost of capital = 5%. III IRR does not account for time value of money. Group of answer choices 1. All of the above. 2. I and II 3. I and III 4. II and III