Compute the PI statistic for Project Z and advise the firm whether to accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 10 percent. Project Z Time 0 1 2 3 4 5 Cash Flow –$ 1,000 $ 350 $ 380 $ 420 $ 300 $ 100 Multiple Choice The project's PI is 16.48 percent and the project should be accepted. The project's PI is
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Compute the PI statistic for Project Z and advise the firm whether to accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 10 percent. Project Z Time 0 1 2 3 4 5 Cash Flow –$ 1,000 $ 350 $ 380 $ 420 $ 300 $ 100 Multiple Choice The project's PI is 16.48 percent and the project should be accepted. The project's PI is
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- Compute the PI statistic for Project X and note whether the firm should accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 10 percent. Time: 0 1 2 3 4 5 Cash flow: −250 75 0 100 75 50 Multiple Choice −0.0977 percent, reject −9.77 percent, reject −24.41 percent, reject 24.41 percent, acceptCompute the NPV statistic for Project Y. Explain whether or not the firm should accept or reject the project with the cash flows shown in the chart below if the appropriate cost of capital is 10%. Year 0 = -8,000, year 1 = 3,350, Year 2 = 4,180, Year 3 = 1,520, Year 4 = $300A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year Cash Flow 0 –$ 28,900 1 12,900 2 15,900 3 11,900 What is the NPV for the project if the required return is 11 percent? At a required return of 11 percent, should the firm accept this project? What is the NPV for the project if the required return is 25 percent?
- A firm evaluates all of its projects by applying the NPV decision rule. A project under consideration has the following cash flows: Year Cash Flow 0 –$ 29,000 1 13,000 2 16,000 3 12,000 What is the NPV for the project if the required return is 12 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) At a required return of 12 percent, should the firm accept this project? multiple choice 1 Yes No What is the NPV for the project if the required return is 24 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) At a required return of 24 percent, should the firm accept this project? multiple choice 2 Yes NoCompute the IRR statistic for Project X and note whether the firm should accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 10 percent. Time: 0 1 2 3 4 5 Cash flow: −75 −75 0 100 75 50Project X has the following cash flows: C0 = +2,000, C1 = -1,150, and C2 = -1,150. If the IRR of the project is 9.85 percent and if the cost of capital is 12.00 percent, you would Group of answer choices reject the project accept the project
- A project has initial costs of $1,000 and subsequent cash inflows of $700, 200, 200 and 200. The company's 10% cost of capital is an appropriate discount rate for this average risk project. Calculate the following: 1. Payback Period 2. NPV 3. Profitability Index 4. IRR 5. MIRR Please number/label each of your answers as shown above. Be sure to show your TVM function calculator inputs, and four decimal places.Compute the PI statistic for Project Q and advise the firm whether to accept of reject the project with the cash flows shown as follows if the appropriate cost of capital is 12% Time 0 1 2 3 4 5 Cash Flows -1000 250 180 420 300 100Project X has the following cash flows: C0 = -1,250, C1 = 750, and C2 = 900. If the IRR of the project is 20 percent and if the cost of capital is 25 percent, you would need more information accept the project reject the project be indifferent
- Project A and B have a cost of OMR (700). Each project generates cash flows as seen in the below table, According to the payback period method and in the line of risk and liquidity preference, answer the following:- (Hint:- Your answer must be not random.) which is the project you will select? Justfy your decision. End-of- Year Cash Flow Project 1 2 3 A 500 300 100 B 400 450 100Find the modified internal rate of return (MIRR) for a proposed project costing $12,513. Assume that the appropriate cost of capital for projects of this risk level, at this company is 10.96%, and the estimated cash flows for the life of the project are found in the table below. (If you calculate an MIRR of 20.22% , please enter 20.22- do not include the % symbol, and use at least two decimal places). Year 1 $7,261 Year 2 $4,832 Year 3 $9,441.2 Year 4 $13,000 Year 5 $12,638Please answer the following questions using the information below: NPV. Using a 10% required rate of return, calculate the NPV for this project. Should it be accepted or rejected? PI. Calculate the Profitability Index (PI) for this project. Should it be accepted or rejected? Consider the following cash flows: Year 0 1 2 3 4 5 6 Cash Flow -$8,000 $3,000 $3,600 $2,700 $2,500 $2,100 $1,600 Payback. The company requires all projects to payback within 3 years. Calculate the payback period. Should it be accepted or rejected? Discounted Payback. Calculate the discounted payback using a discount rate of 10%. Should it be accepted or rejected? IRR. Calculate the IRR for this project. The company’s required rate of return is 10%. Should it be accepted or rejected? NPV. Using a 10% required rate of return, calculate the NPV for this project. Should it be accepted or rejected? PI. Calculate the Profitability Index (PI) for this project. Should it be accepted or rejected?…