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Brunko Hospitality Investment Associates have been approached to evaluate a set of capital budgeting projects. The expected net cash flows along with the initial outlays are represented in the data table below: Year Project 1 Project 2 0 -$250,000 -$250,000 1 $0 $120,000 2 $0 $120,000 3 $0 $120,000 4 $0 $120,000 5 $900,000 $120,000 This firm would like to evaluate the set of capital budgeting projects based on the NPV and IRR. If the minimum required rate of return is 13.00% for both of the projects, which project seems like a better investment to undertake?

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Consider two mutually exclusive new product launch projects that Nagano Golf is considering. Assume that the discount rate for Nagano Golf is 17 percent Project A: Nagano NP-30. Professional clubs that will take an initial investment of $995,000 at time 0. Next five years (years 1-5) of sales will generate a consistent cash flow of $452,000 per year. Introduction of new product at year 6 will terminate further cash flows from this project. Project B. Nagano NX-20. High-end amateur clubs that will take an initial Investment of $730,000 at time 0. Cash flow at year 1 is $300,000. In each subsequent year, cash flow will grow at 10 percent per year. Introduction of new product at year 6 will terminate further cash flows from this project. Year SAWNTO 1 2 3 4 5 NP-30 -$995,000 452,000 452,000 452,000 452,000 452,000 NX-20 -$730,000 300,000 330,000 363,000 399, 300 439, 230 Complete the following table: (Do not round intermediate calculations. Round the "PI" answers to 3 decimal places and…

Pecos Corporation is considering several investment proposals, as shown below: Investment required Present value of future net Investment Proposal OD, B, C, A O B, D, C, A OB, D, A, C O A, C, B, D A B $ 80,000 $ 100,000 C $ 60,000 D $ 75,000 cash flows $ 96,000 $ 150,000 $ 84,000 $ 120,000 If the project profitability index is used, the ranking of the projects from most to least profitable would be:

You are the investment manager of an appliance company. The industry is currently in the expansion face and the CEO would like to capture as much of the market share as possible. You asked your analysts to submit project proposals as summarized below. Project Discount Rate Investment Annual Cash Flow Project Life (Years) 10 3M 1M 5 12 4M 1M 8 8 5M 2M 4 8 3M 1.5M 3 12 3M 1M 6 Which projects should the manager choose? If you were given unlimited capital, which projects should be implemented? ABCDE

You were approached with the task of assessing three supposedly value-enhancing investment opportunities your company is considering. The cash flows for each are listed below. Assume that all three projects are equally risky and have a discount rate of 6.00% per year. Time Project A Project B Project C 01234 -$250 -$1,200 -$1,800 $50 $300 $750 $50 $500 $350 $50 $600 $750 $50 $1,000 $450 Infinity $50 Calculate the payback period for project "B". Note: Report your answer in years rounded to two decimal places. If it is impossible to compute the answer, report 0.00 as your response.

Shaylee Corporation has $2.00 million to invest in new projects. The company's managers have presented a number of possible options that the board must prioritize. Information about the projects follows: Initial investment Present value of future cash flows Project A 5 430,000 780,000 Project 8 $ 245,000 430,000 Required: 1. is Shaylee able to invest in all of these projects simultaneously? 2-a. Calculate the profitability index for each project. 2-b. What is Shaylee's order of preference based on the profitability index? Complete this question by entering your answers in the tabs below. Reg 1 Is Shaylee able to invest in all of these projects simultaneously? is Shaylee able to inved in all of these projects intaneously Reg Req 2A and 28 > Project C $735,000 1,215,000 Project D $360,000 1,576,000

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2. Project 2: investing $11 million to develop add-ons to existing products a. these add-ons to existing products are expected to generate $1.5 million positive cash flow every year thereafter on both new and existing products b. Calculate NPV. c. What is payback, PI, and IRR? What decisions should be made? d. If Skyhawk's management decided that they only need to collect their initial investment within 8 years on this project, should they invest?   The rate of return = 8.28%

You are a financial analyst for the Hittle Company. The director of capital budgeting has asked you to analyze two proposed capital investments, Projects X and Y. Each project has a cost of $10,000, and the cost of capital for each is 12% for both projects. The projects’ expected net cash flows are as follows:   Expected Net cash flows Year Project X Project Y   0 -10000 -10000   1 6350 3600   2 2988 3700   3 3145 3500   4 945 3500   Calculate each project’s payback period, net present value (NPV), internal rate of return (IRR), and profitability index (PI)

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which one is correct please confirm? QUESTION 19 Whipple Industries Inc. is in the process of determining its optimal capital budget for next year. The following investment projects are under consideration:   Required Expected Rate Project Investment of Return A $2 million   20.0% B $3 million 15.0% C $1 million 13.5% D $4 million 13.0% E $1 million 12.5% F $3 million 12.0% G $5 million 11.5% ​ The firm's marginal cost of capital schedule is as follows: Amount of   Funds Raised Cost $0 - $6 million 12.0% $6 million - $12 million 12.5% $12 million - $18 million 13.5% Over $18 million 15.0% ​ Determine Whipple's optimal capital budget (in dollars) for the coming year.   a. $5 million   b. $10 million   c. $14 million   d. $11 million

SUPERIOR Company Limited is considering the following projects for inclusion in its capital budget for year 2021.The projects have equal risks and the capital outlay required is as follows: Project Investment required Project  Investment Requirement  Return    $000 $000 1 24,000 5520 2 9600 3072 3 7000 980 4 4800 864 5 3200 640 6 1400 392 As the Divisional Manager, you are to decide which of the projects to accept. The company has a cost of capital of 15% with $60million available to the division for investment purposes.Required: Compute the total investment, total return on capital invested and residual income on each of the following assumptions, indicating the preferred project: The Company has a rule that all projects promising at least 20% or more should be accepted.  The divisional manager is evaluated on his ability to maximise his return on capital investment.  The divisional manager is expected to maximise residual income as computed by using…

Part 3: Capital Budgeting and Project Evaluation Case Study: Assume that the company, where you are working as a team in Financial Department, is considering a potential project with a new product. It will require the company to buy a new equipment that will generate the same revenue for the company each year. The table below shows the initial and annual costs for each option. 3.1. Capital Budgeting Decision Making: Perform capital budgeting technique based on Equivalent Annual Cost (EAC) to advise the Company Management which option should be chosen if the relevant discount rate is 9%? Costs Option A Option B Initial Investment 1,400,000 1,500,000 Year 1 35,000 25,000 Year 2 35,000 25,000 Year 3 35,000 25,000 Year 4 35,000 25,000 Year 5   25,000 3.2. Risk Analysis and Project evaluation: Assume that the company finally chose Option B. It expects to sell 600,000 units of the new product for an average price of $15 per unit. The…

Andrew Oxnard, chief financial officer, has been asked by Harry Pendel, chief executive officer and co-founder of Pendel & Braithwaite, Ltd. (P&B), to analyze two capital investment projects (projects A and B), which are expected to generate the following profit (p)streams:   Profit Streams for Projects A and B period  ?? ($) ?? ($) 1 100,000 350,000 2 200,000 300,000 3 250,000 200,000 4 300,000 100,000 5 325,000 100,000 Total  1,175,000 1,050,000 Profits are realized at the end of each period. Assuming that P&B is a profit maximizer if the discount rate for both projects is 12%, which of the two projects should be adopted?

Consider how Steinback Valley River Park Lodge could use capital budgeting to decide whether the $12,000,000 River Park Lodge expansion would be a good investment. Assume Steinback ​Valley's managers developed the following estimates concerning the​ expansion: 1​(Click the icon to view the​ estimates.)   Read the requirements2.   Requirement 1. Compute the average annual net cash inflow from the expansion.   The average annual net cash inflow from the expansion is   Requirement 2. Compute the average annual operating income from the expansion.   The average annual operating income from the expansion is   1: Data Table Number of additional skiers per day 119 skiers Average number of days per year that weather conditions allow skiing at Steinback Valley 151 days Useful life of expansion (in years) 8 years Average cash spent by each skier per day $244 Average variable cost of serving each skier per day 78 Cost…