URGENT!!! ou have 3 projects with the following cash flows:YearProject 1Project 2Project 30-$152-82520OD. Project 2OE. Project 1OF. Project 3a3- Q Search1$20OA. There is not enough information available to answer this question.OB. The IRR rule should agree with the NPV rule for all of the above projects.OC. Project 1 & Project 3$0424For which of these projects is the IRR rule reliable? Put another way, for which of these projects would you feel comfortable that the IRR decision rule would agree with the NPV decision rule? (Choose the mostappropriate answer)2$39do06053$626,9978216&4$81-6,500-2467*O8www144(9▷OTime Remaining: 00:41:59BO980backspaceNext8:29 PM11/1/2023

Internal Rate of Return is important part of decision making in capital budgeting. It is important…

Year Project 1 Project 2 Project 3 0 -$152 -825 20 OD. Project 2 OE. Project 1 OF. Project 3 1 $20 0 42 2 $39 0 60 3 $62 6,997 82 OA. There is not enough information available to answer this question. OB. The IRR rule should agree with the NPV rule for all of the above projects. OC. Project 1 & Project 3 4 $81 -6,500 -246 O For which of these projects is the IRR rule reliable? Put another way, for which of these projects would you feel comfortable that the IRR decision rule would agree with the NPV decision m appropriate answer) CHIE

Year Project 1 Project 2 Project 3 0 -$152 -825 20 OD. Project 2 OE. Project 1 OF. Project 3 1 $20 0 42 2 $39 0 60 3 $62 6,997 82 OA. There is not enough information available to answer this question. OB. The IRR rule should agree with the NPV rule for all of the above projects. OC. Project 1 & Project 3 4 $81 -6,500 -246 O For which of these projects is the IRR rule reliable? Put another way, for which of these projects would you feel comfortable that the IRR decision rule would agree with the NPV decision m appropriate answer) CHIE

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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You have 3 projects with the following cash flows: Year 1 Project 1 Project 2 Project 3 - $150 $18 $42 $61 $79 - 6,494 - 245 - 826 7,005 21 40 61 80 For which of these projects is the IRR rule reliable? Put another way, for which of these projects would you feel comfortable that the IRR decision rule would agree with the NPV decision rule? (Choose the most appropriate answer) O A. Project 1 O B. Project 1 & Project 3 OC. There is not enough information available to answer this question. O D. Project 3 O E. The IRR rule should agree with the NPV rule for all of the above projects. O F. Project 2
M2P4U4. Payback Period Problem. Assume the following cash flow for 2 projects. Assuming that the cash flows are occurring at the end of the year. Find the payback period for both these projects. SHOW COMPLETE SOLUTION. Year Project 1 Project 2 -1000 600 400 -1000 100 400 200 600 200 100 600 700 O123 45
Tuttle Enterprises is considering a project that has the following cash flow and WACC data. What is the project's NPV? Note that if a project's projected NPV is negative, it should be rejected. WACC: Year Cash flows a. $196.28 b. $395.09 c. $680.00 Od. $223.76 e. $473.68 14.00% 0 -$1,000 1 $420 2 $420 3 $420 4 $420
The following are the cash flows of two projects: Year Project A Project B -$200 -$200 01234 Project A B If the opportunity cost of capital is 11%, what is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 4 decimal places.) Profitability index 80 80 80 80 00 100 100 100 Is the project with the highest profitability index also the one with the highest NPV? Yes No
(Mutually exclusive projects and NPV) You have been assigned the task of evaluating two mutually exclusive projects with the following projected cash flows: Year ܘ ܝ 1 2 1345 Project A Cash Flow $(95,000) 35,000 35,000 35,000 35,000 35,000 Project B Cash Flow $(95,000) The NPV of Project A is $ 0 0 0 0 230,000 (Click on the icon in order to copy its contents into a spreadsheet.) If the appropriate discount rate on these projects is 9 percent, which would be chosen and why (Round to the nearest cent.)
Consider two mutually exclusive projects, A and B, whose costs and cash flows areshown in the following table:Year Project A Project B1 $(14,000) $(22,840)2 8,000 8,0003 6,000 8,0004 2,000 8,0005 3,000 8,000Calculate the cross over rate. Please use equations and not excel
onsider the following cash flows: C0=-$42 C1=+$38 C2=+$38 C3=+$38 C4=-$76 a. Which two of the following rates are the IRRs of this project?
The following are the cash flows of two projects: Year 2234O 0 1 Project A $ (380) 210 210 210 210 Project B $ (380) 280 280 280 If the opportunity cost of capital is 11%, what is the profitability index for each project? Note: Do not round intermediate calculations. Round your answers to 4 decimal places. Project A B Answer is complete but not entirely correct. Profitability Index 1.7145 X 1.8006
2) You have 3 projects with the following cash flows: Year 0 1 2 3 4 Project 1 -$150 $20 $40 $60 $80 Project 2 -825 0 0 7,000 -6,500 Project 3 20 40 60 80 -245 For which of these projects is the IRR rule reliable?
Consider two mutually exclusive projects A and B: Cash Flows (dollars) Project Co A -39,500 B -59,500 C₁ 28,600 42,500 C₂ NPV at 11% 28,600 +$ 9,478 42,500 +13,282 a. Calculate IRRS for A and B. Note: Do not round intermediate calculations. Enter your answers as a perc Project A B IRR % % b. Which project does the IRR rule suggest is best? Project A Project B c. Which project is really best? Project A Project B P
Yoga Center Inc. is considering a project that has the following cash flow and cost of capital (r) data. What is the project's NPV? Note that a project's expected NPV can be negative, in which case it will be rejected. 11.00% 0 r Year Cash flows a. $167.41 Ob. $147.23 O c. $90.02 O d. $196.23 O e. $177.40 -$1,200 1 $475 2 $450 3 $425 4 $400
Blinding Light Company has a project available with the following cash flows: Year Cash Flow 0 12345 2 3 4 5 -$ 34,110 8,150 9,810 13,980 15,850 10,700 What is the project's IRR?

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