Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN: 9781337395083
Author: Eugene F. Brigham, Phillip R. Daves
Publisher: Cengage Learning
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Kindly help me with accounting questions
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- Nile Inc. wants to choose the bettter of two mutually exclusive projects that expand warehouse capacity. The projects cash flows are shown in the following table attached. The cost of capital is 14% a. Calculate the IRR for each of the projects . Assess the acceptabiity of each project on the basis of the IRRs. b. Which project is preferred?arrow_forwardFollowing is information on two alternative investment projects being considered by Tiger Company. The company requires a 6% return from its investments. Project X1 Project X2 Initial investment $ (114,000) $ (188,000) Net cash flows in: Year 1 42,000 85,500 Year 2 52,500 75,500 Year 3 77,500 65,500 Compute the internal rate of return for each of the projects using Excel functions. Based on internal rate of return, indicate whether each project is acceptable. Note: Round your answers to 2 decimal places.arrow_forwardThe Whenworth Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow (I) Cash Flow (II) -$84,000 33,900 44,000 50,000 -$42,000 12,600 31,500 25,500 1 a-1. If the required return is 17 percent, 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.) a-2. If the company applies the profitability index decision rule, which project should it take? b-1. If the required return is 17 percent, what is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b-2. If the company applies the net present value decision rule, which project should it take? a-1. Project I Project II а-2. b-1. Project I Project IIarrow_forward
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