Bausch company is presented with the following two mutually exclusive projects. The required return for both projects is 16 %. Year Project M -$ 136,000 63,900 81,900 72,900 Project N -$359,000 150,500 184,000 135,500 1 3 4 58,900 114,000 What is the IRR for each project? What is the NPV for each project? Which, if either of the projects should the company accept?
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- Marissa Manufacturing is presented with the following two mutually exclusive projects. The required return for both projects is 18 percent. Year 0 1 2 3 34 4 Project M -$ 137,000 64,800 82,800 73,800 59,800 Project N -$368,000 a. Project M Project N b. Project M Project N c. Accept project 146,000 193,000 131,000 123,000 a. What is the IRR for each project? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. b. What is the NPV for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. c. Which, if either, of the projects should the company accept? do do % %For the following projects, which project would you select, based on the Equivalent Uniform Amount analysis? Assume the projects are mutually exclusive and MARR is 15%. N (year) Project A Cash Flow($) Project B Cash Flow ($) lo 5000 5500 1 1500 1700 2300 1300 3 900 1300 4 500 1300Bausch Company is presented with the following two mutually exclusive projects. The required return for both projects is 20 percent. Year Project M Project N 0 –$139,000 –$356,000 1 63,600 152,000 2 81,600 181,000 3 72,600 137,000 4 58,600 111,000 a. What is the IRR for each project? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. Which, if either, of the projects should the company accept?
- Marissa Manufacturing is presented with the following two mutually exclusive projects. The required return for both projects is 19 percent. Year OHN M & 0 1 2 3 4 Project M -$ 140,000 63,500 81,500 72,500 58,500 Project N -$ 355,000 152,500 180,000 137,500 110,000 a. What is the IRR for each project? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. b. What is the NPV for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. c. Which, if either, of the projects should the company accept? a. Project M Project N b. Project M Project N c. Accept project % %Bausch Company is presented with the following two mutually exclusive projects. The required return for both projects is 16 percent. Year Project M Project N 0 –$136,000 –$359,000 1 63,900 150,500 2 81,900 184,000 3 72,900 135,500 4 58,900 114,000 a. What is the IRR for each project? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) PROJECT M IS 36.69% PROJECT N IS 24.21% b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) PROJECT M IS $59,185.14 PROJECT N IS $57,253.65 c. Which, if either, of the projects should the company accept?Bausch Company is presented with the following two mutually exclusive projects. The required return for both projects is 20 percent. Year Project M Project N 0 -$142,000 -$363,000 1 64,300 148,500 2 82,300 188,000 3 73,300 133,500 4 59,300 118,000 a. What is the IRR for each project? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. Which, if either, of the projects should the company accept? % a. Project M % Project N b. Project M Project N c. Accept project
- Bausch Company is presented with the following two mutually exclusive projects. The required return for both projects is 17 percent. Year 0 1 a. 2 3 4 b. Project M -$145,000 C. 64,000 82,000 73,000 59,000 a. What is the IRR for each project? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decim places, e.g., 32.16.) b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. Which, if either, of the projects should the company accept? Project N -$360,000 150,000 185,000 135,000 115,000 Project M Project N Project M Project N Accept project % %Determine which of the following independent projects should be selected for investment if a maximum of $240,000 is available and the MARR is 10% per year. Use the PW method to evaluate mutually exclusive bundles to perform your analysis. Project Investment, $ NCF, $/Year Life, Years A −100,000 50,000 8 B −125,000 24,000 8 C −120,000 75,000 8 E −220,000 39,000 8 F −200,000 82,000 8eBook Project S costs $14,000 and its expected cash flows would be $6,500 per year for 5 years. Mutually exclusive Project L costs $30,000 and its expected cash flows would be $10,150 per year for 5 years. If both projects have a WACC of 16%, which project would you recommend? Select the correct answer. Oa. Project L, since the NPVL > NPVS. Ob. Both Projects S and L, since both projects have NPV's > 0. Oc. Project S, since the NPVS > NPVL. Od. Both Projects S and L, since both projects have IRR's > 0. Oe. Neither Project S nor L, since each project's NPV < 0.
- Calculating Payback Period and NPV Novell, Inc., has the following mutually exclusive projects. Year Project A Project B 0 -$15,000 -$19,000 1 10,400 12,700 2 5,900 6, 100 3 2,100 5, 300 Suppose the company’s payback period cutoff is two years. Which of these two projects should be chosen? Suppose the company uses the NPV rule to rank these two projects. Which project should be chosen if the appropriate discount rate is 15 percent?An engineer at Suncore Micro, LLC calculated the present worth of mutually exclusive bundles, each composed of one or more independent projects. Select the acceptable bundle if the capital investment limit is $50,000 and the MARR is 15% per year. Project Bundle Initial Investment PW, $ 1 −27,000 2400 2 −33,000 9200 3 −44,000 7300 4 −51,000 11,400 5 −66,000 10,800 I know you have already solved this exercise.Dorati Inc. is considering two mutually exclusive projects. Dorati used a 15% required rate of return to evaluate capital expenditure projects. Assuming the two projects have the costs and cash flows shown below, determine the NPV for each using a replacement chain. Year Project S Project T 0 –$70,000 –$100,000 1 $50,000 $ 60,000 2 $60,000 $ 70,000 3 $ 80,000 4 $ 90,000 A. Assume in two years Project S will still cost $70,000 and produce the same two years of cash flows. B. Find the IRR (using 6% & 8% or 10% & 11%) of an investment having initial cash outflow of $3,000. The cash inflows during the first, second, third and fourth years are expected to be $700, $800, $900 and $1,200 respectively