XYZ Corporation evaluates two projects. Projects x and y; the below table shows their cash flows. These projects are mutually exclusive, equally risky and are not repeatable. If the decision is made by choosing the Project with the higher IRR, how much value will be forgone? Wacc %8 01234CF(X)($1,050)$675$650 CF(Y)($1,050)$360$360$360$360a. IRR of Project X: %..........b. IRR of Project Y: %..........c. NPV of Project X: $............d. NPV of Project Y: $............e. The Value forgone: $.............. Click to see additional instructionsXYZ corporation evaluates two projects, Projects X and Y; the below table shows their cash flows. These projects are mutually exclusive, equally risky, and are not repeatable. Ifthe decision is made by choosing the project with the higher IRR, how much value will be forgone?WACC: 8.00%13.4CFx ($1,050) $675 $650CFy ($1,050) $360 $360 $360 $360(Round to TWO decimals.)a. IRR of Project X:%.b. IRR of Project Y:%.C. NPV of Project X: $d. NPV of Project Y: $e. The value forgone: $

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XYZ Corporation evaluates two projects. Projects x and y; the below table shows their cash flows. These projects are mutually exclusive, equally risky and are not repeatable. If the decision is made by choosing the Project with the higher IRR, how much value will be forgone? Wacc %8 0 1 2 3 4 CF(X) ($1,050) $675 $650 CF(Y) ($1,050) $360 $360 $360 $360 a. IRR of Project X: %.......... b. IRR of Project Y: %.......... c. NPV of Project X: $............

XYZ Corporation evaluates two projects. Projects x and y; the below table shows their cash flows. These projects are mutually exclusive, equally risky and are not repeatable. If the decision is made by choosing the Project with the higher IRR, how much value will be forgone? Wacc %8 0 1 2 3 4 CF(X) ($1,050) $675 $650 CF(Y) ($1,050) $360 $360 $360 $360 a. IRR of Project X: %.......... b. IRR of Project Y: %.......... c. NPV of Project X: $............

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 13P

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XYZ Corporation evaluates two projects. Projects x and y; the below table shows their cash flows. These projects are mutually exclusive, equally risky and are not repeatable. If the decision is made by choosing the Project with the higher IRR, how much value will be forgone? Wacc %8 0 1 2 3 4 CF(X) ($1,050) $675 $650 CF(Y) ($1,050) $360 $360 $360 $360 IRR of Project X: %17 IRR of Project Y: %14 NPV of Project X: $132 What are: a. NPV of Project Y: $............ b. The Value forgone: $..............
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