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Question 6   A project has expected cash inflows, starting with year 1, of $2,200, $2,900, $3,500 and finally in year four, $4,000. The profitability index is 1.14 and the discount rate is 12 percent. What is the initial cost of the project?    Group of answer choices   $9,211.06 $9,250.00 $8,166.19 $7,899.16 $8,098.24

Question 4 Assume that you are analysing a capital budgeting project. The initial investment for buying machichnary and equipment cost $5million and project will last for 5 year. The expected revenue is to be $2 million per year and operating cost is expected to be 30% of the total revenue. If the salvage (scrap) value at the end of 5 is estimated to be $0.50 million. You may use straight-line method to calculate the depreciation for the project. The tax rate is estimated to be 30% per annum. The project has the cost of capital of 10%. a. Calculate net cash flows for each year. b. Calculate the NPV and determine the payback period. c. Will you accept this project based on NPV? If the project payback policy is 4 years, will you accept this project?

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

Problem 21 Compute the (1) net present value and (ii) discounted payback period of the following capital budgeting projects. The firm's required rate of return is 12 percent. Projects Year 123 Zeta $(50,000) 20,000 15,000 30,000 Omega $(45,000) 42,000 9,000 1,850 Based on your calculations, which project will be selected if you have to choose only one of the two projects?

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Part 1 Please calculate the payback period, IRR, MIRR, NPV, and PI for the following two mutually exclusive projects. The required rate of return is 15% and the target payback is 4 years. Explain which project is preferable under each of the four capital budgeting methods mentioned above:   Table 1 Cash flows for two mutually exclusive projects Year Investment A Investment B 0 -$5,000,000 -5,000,000 1 $1,500,000 $1,250,000 2 $1,500,000 $1,250,000 3 $1,500,000 $1,250,000 4 $1,500,000 $1,250,000 5 $1,500,000 $1,250,000 6 $1,500,000 $1,250,000 7 $2,000,000 $1,250,000 8 0 $1,600,000   Part 2 Please study the following capital budgeting project and then provide explanations for the questions outlined below:   You have been hired as a consultant for Pristine Urban-Tech Zither, Inc. (PUTZ), manufacturers of fine zithers. The market for zithers is growing quickly. The company bought some land three years ago…

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25.A capital budgeting project has an initial investment cost of $1,000,000 (in Year 0), and it is expected to generate cash flows of $350,000 annually for 4 years (in Years 1-4).  What is the internal rate of return (IRR)? Group of answer choices 22.11% 26.43% 2.48% 14.96%

4 You are considering the following investment activity.  The facts are the following:                   Required investment   300,000.00           Discount Rate 9%           Life of project               7.00 Years         Net income for the project             Sales   140,000.00           Expenses             Material     25,000.00           Labor     35,000.00           Overhead     15,000.00           Total Expenses     75,000.00           Net Income     65,000.00                         What is the NPV of this investment?           What is the IRR of this investment?           Would you fund this project?                         Show your work below                Year               0               1               2               3               4               5               6               7

Basic Capital Budgeting Techniques Answer each independent question, (a) through (e).a. Project A costs $5,000 and will generate annual after-tax net cash inflows of $1,800 for 5 years.What is the payback period (in years, rounded to 2 decimal places) for this investment under theassumption that the cash inflows occur evenly throughout the year?b. Project B costs $5,000 and will generate after-tax cash inflows of $500 in year 1, $1,200 in year2, $2,000 in year 3, $2,500 in year 4, and $2,000 in year 5. What is the payback period (in years,rounded to 2 decimal places) for this investment assuming that the cash inflows occur evenlythroughout the year?c. Project C costs $5,000 and will generate net cash inflows of $2,500 before taxes each year for 5years. The firm uses straight-line depreciation with no salvage value and is subject to a 25% taxrate. What is the payback period (in years, and rounded to 2 decimal places) under the assumptionthat all cash inflows occur evenly throughout the…