12 Consider the following two projects:Year 3Year 4DiscountRateYear 0Year 1Year 2ProjectCash Flow Cash Flow Cash Flow Cash Flow Cash FlowA- 100405060N/A0.16B.- 73303030300.16The profitability index for project B is closest to:O A. 0.15O B. 22.49O C. 14.99O D. 0.09

Given: Year Particulars Amount 0 Cash outflows -$73 1 Cash inflows $30 2 Cash inflows $30…

Consider the following two projects: Year 4 Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow N/A Project Year 0 Year 1 Year 2 Year 3 Discount Rate A - 100 40 50 60 0.16 B - 73 30 30 30 30 0.16 The profitability index for project B is closest to: O A. 0.15 B. 22.49 O C. 14.99 D. 0.09

Consider the following two projects: Year 4 Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow N/A Project Year 0 Year 1 Year 2 Year 3 Discount Rate A - 100 40 50 60 0.16 B - 73 30 30 30 30 0.16 The profitability index for project B is closest to: O A. 0.15 B. 22.49 O C. 14.99 D. 0.09

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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Question

Consider the following two projects:
Year 3
Year 4
Discount
Rate
Year 0
Year 1
Year 2
Project
Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow
A
- 100
40
50
60
N/A
0.16
B.
- 73
30
30
30
30
0.16
The profitability index for project B is closest to:
O A. 0.15
O B. 22.49
O C. 14.99
O D. 0.09

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Consider the following two projects: Project Year o Year 1 Year 2 Year 3 Year 4 Discount Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow Rate A - 100 40 50 60 N/A 0.1 в - 73 30 30 30 30 0.1 The net present value (NPV) of project B is closest to: O A. 24.3 O B. 55.2 O C. 27.6 O D. 22.1
Consider the following two projects: Projec Year 0 Year 1 Year 2 Year 3 Year 4 Cash Cash Cash Cash Cash Discount Flow Flow Flow Flow Flow Rate A -100 40 50 60 N/A 0.11 -73 30 30 30 30 0.11 The net present value (NPV) of project As closest to Select one: a. 51.2 b. 25.6 O c. 20.5 Od. 22.5
Consider the following two projects: Project Year 0 Cash Flow - 100 - 73 A 50 B 30 The net present value (NPV) of project A is closest to OA. 22.9 B. 18.3 Year 1 Year 2 Year 3 Cash Flow Cash Flow Cash Flow C. 45.7 D. 20.1 40 30 60 30 Year 4 Cash Flow N/A 30 Discount Rate 0.12 0.12
Consider the following two projects: Project Year 0 Year 1 Cash Flow Cash Flow A B - 100 -73 40 30 OA. 2.7 years OB. 2 years OC. 2.3 years D. 2.5 years Year 2 Cash Flow 50 30 The payback period for project A is closest to Year 3 Cash Flow 40 30 *** Year 4 Cash Flow N/A 30 Discount Rate 0.1 0.1
Consider the following two projects: Project Year 0 Year 1 Year 2 Year 3 Year 4 Discount Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow Rate A B -100 -73 40 30 50 50 N/A 0.11 30 30 30 0.11 The payback period for project A is closest to A. 2.4 years B. 2.2 years ○ C. 2 years OD. 2.6 years
Question The following economical indictors are referring to types of project (A and B). Answer the following points according to these given indictors in the tables. project A:r=8% project B: r=8% year cash flow (CF) year cash flow (CF) 0 -598 0 -384 1 110 1 105 2 170 2 105 3 210 3 95 4 320 4 118 A) If you are aware that( r%) percentages are various for different reasons to be (10% and 20%). So determine level of NPV during your analysis procedures for whole the mentioned cases of (% r) for each project? B) Which one of the mentioned project are more economically by using concept of IRR and take the range of (% r) between (9% to %25) for supporting your answers? C) Drawing out all the levels of various of the project for each cases of (r %) which given initially in point (A) above. D) Give clear justification about any of the above project more feasible?
Consider the following two projects: Project Year 0 Year 1 Year 2 Year 3 Year 4 Discount Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow Rate A – 100 40 50 60 N/A 0.1 В - 73 30 30 30 30 0.1 The net present value (NPV) of project B is closest to: А. 24.3 В. 55.2 С. 27.6 D. 22.1
Consider the following two projects: Project Year 0 Year 1 Year 2 Year 3 Year 4 Discount Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow Rate A - 100 40 50 60 N/A 0.14 B - 73 30 30 30 0.14 The payback period for project A is closest to: A. 2.2 years B. 2 years C. 2.4 years D. 2.6 years
The following are the cash flows of two projects: Year 0 1 2 3 4 Project A $ (220) 100 100 100 100 Project B $ (220) 120 120 120 What are the internal rates of return on projects A and B? Note: Enter your answers as a percent rounded to 2 decimal places. Project A B IRR % %
Consider the following two projects: Year 0 Project Cash Flow - 100 - 73 Discount Rate A 50 60 .15 B 30 30 .15 The maximum number of incremental IRRs that could exist for project B over project A is: Year 1 Cash Flow O A. 2 OB. 3 O C. 1 OD. O Year 2 Cash Flow 40 30 Year 3 Cash Flow Year 4 Cash Flow N/A 30 ...
4. Consider the two projects depicted in Table 2: The net present value (NPV) of project A is ________ TABLE 2 Project Year 0 Year 1 Year 2 Year 3 Year 4 Discount Cash Flow Cash Flow Cash Flow Cash Flow. Cash Flow. Rate A. -100. 40. 70 60 0. 0.11 B -80 50 30 30 30 0.11 5 Consider the two projects depicted in Table 2: The net present value (NPV) of project B is ________.
Consider the following two mutually exclusive projects: Year Cash Flow (X) Cash Flow (Y) 0 -$ 15,900 -$ 15,900 1 6,710 7,290 2 7,290 7,730 3 4,810 3,630 a. What is the IRR of Project X? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decim b. What is the IRR of Project Y? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decim c. What is the crossover rate for these two projects? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decim a. IRR b. IRR % % c. Crossover rate %

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