If the cash flows for Project M are Co= -1,280; C₁ = 270 ; C₂ = 770; and C3 = 768, calculate the IRR for the project. Multiple Choice O 16.7 percent 14.7 percent 12.7 percent 10.7 percent
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- onsider the following cash flows: C0=-$42 C1=+$38 C2=+$38 C3=+$38 C4=-$76 a. Which two of the following rates are the IRRs of this project?11. IRR rule (S5.3) Consider the following two mutually exclusive projects: Cash flows ($) Project A B Co -50 -50 C₁ +60 0 C₂ +60 0 0 +140 Page 142 a. Calculate the NPV of each project for discount rates of 0%, 10%, and 20%. Plot these on a graph with NPV on the vertical axis and discount rate on the horizontal axis. b. What is the approximate IRR for each project? c. In what circumstances should the company accept project A? d. Calculate the NPV of the incremental investment (B – A) for discount rates of 0%, 10%, and 20%. Plot these on your graph. Show that the circumstances in which you would accept A are also those in which the IRR on the incremental investment is less than the opportunity cost of capital.7.16)Consider the investment projects given in Table P7.16. Assume that MARR = 12% in the following questions. (a) Compute i* for each investment. If the problem has more than one i*, identify all of them. (b) Compute IRR(true) for each project. (c) Compute the MIRR at MARR = 12%. (d) Determine the acceptability of each investment. TABLE P7.16 Net Cash Flow Project 1 Project 2 Project 3 -$1,000 -$1,000 -$1,000 1 2,500 1,960 1,400 2 -840 950 -200
- Use the table for questions 18 and 19 below. Consider the following two projects: Year 0 Year 1 Year 2 Year 3 Year 4 Cash Elow. Cash Elow Cash Flow Cash Cash Elow Discount Project Flow Rate A -78 20 40 60 .105 B -86 37 24 24 46 105 Question 18 The NPV of project A is closest to: a) 16.0 b) 34.6 c) 39.3 d) 41.6 Answer. Question 19 The NPV of project B is closest to: a) 33.3 b) 43.3 c) 44.6 d) 54.3QUESTION 3 If the cash flows for Project M are CO= -2,000; C1 = +400; C2 = +1,400; and C3= +1,300, calculate the IRR for the project. Please input the percentage format for your answer. And there is no need to put the percentage sign (%).Consider the following two mutually exclusive investment projects:Project Cash Flowsn A B 0 -$4,000 -$8,5001 $400 $11,5002 $7,000 $400Assume that the MARR = 15%.(a) Using the NPW criterion, which project would you select?(b) On the same chart, sketch the PW(i) function for each alternative fori = 0% and 50%. For what range of i would you prefer Project B?
- 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. 22.5Consider 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? 2.5% 7.8% 14.3% 32.5% 40.0% b. What is project NPV if the discount rates are 5%, 20%, 40%? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 3 decimal places.)6.20 The cash flows for two investment projects are as given in Table P6.20. (a) For project A, find the value of X that makes the equivalent annual receipts equal the equivalent annual disbursement at i = (b) For A to be preferred over project B, determine the minimum acceptable value of X in year 2 at i 15%. 12% based on an AE criterion. TABLE P6.20 Project's Cash Flow B 01 -$4,500 $6,500 $1,000 -$1,400 2 -$1,400 3 $1,000 -$1,400 $1,000 -%$1,400
- 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. 22.1Compute the NPV for Project X with the cash flows shown below if the appropriate cost of capital is 11 percent. Time: 0 1 2 3 4 5 Cash flow: -115 -115 0 180 155 130 Multiple Choice О $83.12 О $92.26 О $310.87 О $151.88Consider 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