ISEN 210 EECON Homework 3 Spring 2024

Project X cash flows is given on the timeline below 0. 2. 3 4. Project X -$10,000 $6.500 $3,000 $3.000 $1.000 Calculate Project X NPV if WACC-9% Round your answer to the nearest hundredth, have at least two decimal digits and write it in the Answer field. Would you accept or reject the project (write in the textbox below the answer field)?

Spreadsheet Link What is the IRR of the following project? Cash Flow Year 0 32.000 9,000 1. 2 10,000 15,200 7,800 4. 1) 10.8% 2) 11.2% • 3) 11.7% 4) 12.0% 5) 12.3% 234

B O Points: 0 of 1 Save You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): Project A B Year 0 - $52 - $99 Year 1 $26 $20 Year 2 $19 $40 a. What are the IRRS of the two projects? b. If your discount rate is 4.8%, what are the NPVs of the two projects? c. Why do IRR and NPV rank the two projects differently? a. What are the IRRS of the two projects? The IRR for project A is %. (Round to one decimal place.) Year 3 $22 $50 Year 4 $15 $59

Details WACC 0 SGWN-O 1 2 3 4 5 6 7.80% Project A Project B -1225 395 402 423 432 489 512 -2146 592.5 603 634.5 648 733.5 768 1. Construct NPV profile table by using cashflows from Project A and B above. 2. Draw NPV profile 3. Compute crossover rate To receive EC your work has to be done in Excel.

Consider projects A and B: Cash Flows (dollars) Project A Co -30,500 C1 C2 21,400 21,400 NPV at 11% +$6,148.00 B -50,500 33,500 33,500 + 6,869.53 a. Calculate IRRS for A and B. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Project A B IRR % % b. Which project does the IRR rule suggest is best? O Project A ○ Project B c. Which project is really best? ○ Project A O Project B k

Consider the following cash flows: C₁ Co -$45 +$41 +$41 +$41 a. Which two of the following rates are the IRRS of this project Note: You may select more than one answer. Single click th for a correct answers and double click the box with the que boxes left with a question mark will be automatically grade 2.5% 34.2% 14.3% 34.2% CA -$82 40.0%

Question 9 - Chapter 09 Problem X zto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launch Url=https%253A%252F%252Flms.m apter 09 Prob x r09 Problem Seti 2:50 ed k ces Consider the following two mutually exclusive projects: Year Cash Flow (X) Cash Flow (Y) -$ -$ 0 1 2 3 20,800 9,050 9,500 9,000 Project X Project Y 20,800 10,500 8,000 8,900 Crossover rate Calculate the IRR for each project. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) H Homework Help Websites for Col x % % What is the crossover rate for these two projects? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) % Saved n

Week 6 Homework 4. 5. 6. O Problem Walk-Through A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 0 4 B Project S Project L Icon Key eBook % 1 2 3 -$1,000 $879.32 $260 $10 $15 $420 $809.54 -$1,000 $5 $250 The company's WACC is 9.5%. What is the IRR of the better project? (Hint: The better project may or may not be the one with the higher IRR.) Round your answer to two decimal places. 5 Check My Work (1 remaining)

Spreadsheet Link What is the IRR of the following project?Cash FlowYear0 -32,0001. 9,0002. 10,0003. 15,0004. 7,800 1). 10.8% 2). 11.2% 3). 11.7%4). 12.0% 5). 12.3%

Module 02 Written Assiqnment Application of Future Value and Present Value.xlsx - OpenOffice Calc File Edit View Insert Format Iools Data Window Help ABC 《 的, ABC Verdana 10 В I U 三 開 % 0 □ A B G H I 1. Assume an investment of $2,000 today. Calculate the FV of the investment according to eac 6. 7 a. 6 percent compounded annually 8 9. Rate 6% 10 Nper PMT 12 11 12 PV $2,000.00 $0.00 13 FV 14 15 b. 8 percent compounded annually 16 17 Rate 8% 18 Nper 12 19 PMT 20 PV $2,000.00 21 FV 22 23 c. 10 percent compounded annually 24 25 Rate 10% 26 Nper 12 27 PMT 28 PV $2,000.00 29 FV 30 31 d. 10 percent compounded semiannually 32 Rate K Future Value Present Value 33 10% STD Sheet 1/2 PageStyle Future Value

QUESTION 6 A project has the following cash flows: Year 0 1 2 ων 3 Cash flows -$85 30 35 40 If the required return is 15%, what is the IRR of this project? 9% 10% 11% 12% 15% Click Save and Submit to save and submit. Click Save All Answers to save all answers.

Question content area top Part 1 ​(IRR calculation​) Determine the IRR on the following​ projects:   a. An initial outlay of ​$13,000 resulting in a single free cash flow of ​$17,165 after 9 years b. An initial outlay of ​$13,000 resulting in a single free cash flow of ​$46,394 after 15 years c. An initial outlay of ​$13,000 resulting in a single free cash flow of $105,001after 25 years d. An initial outlay of ​$13,000 resulting in a single free cash flow of ​$13,653 after 4 years

Find the value of P for which the inflows will equal the outflows. Find the effective rate first. Rate Year Outflows 0 1 2 3 4 5 678 9 10 -P -2P -4P -8P -16P $1,530 $2,545 $3,269 $3,490 18% pycd Inflows $24,000 $30,000 $36,000 $42,000 $48,000 $54,000

CENGAGE MINDTAP Week 6 Homework Your division is considering two projects with the following cash flows (in millions): 0 2 1 % Project A -$20 Project B -$13 a. What are the projects' NPVs assuming the WACC is 5%? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to two decimal places. Project A: $ million million Project B: $ What are the projects' NPVs assuming the WACC is 10%? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to two decimal places. Project A: $ million Project B: $ million What are the projects' NPVs assuming the WACC is 15%? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative values,…

26 Exercises 3, 5-7, 14 &18 & 15, Tableau D...i bok int rint rences Information for two alternative projects involving machinery investments follows: Initial investment Salvage value Annual income Required A Project 1 $ (122,000) Required B Project 1 Project 2 0 15,250 a. Compute accounting rate of return for each project. b. Based on accounting rate of return, which project is preferred? Complete this question by entering your answers in the tabs below. Project 2 $ (92,000) 12,000 12,480 Compute accounting rate of return for each project. Numerator: Saved Accounting Rate of Return I < Prev Denominator: 3 of 9 IL Next Accounting rate of return

2 ts 02:59:19 eBook Hint Print ferences Kara, Incorporated, imposes a payback cutoff of three years for its international investment projects. Year O 1 2 3 4 Cash Flow (A) -$ 65,000 25,500 33,000 23,500 10,500 Project A Project B What is the payback period for both projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Cash Flow (B) -$ 75,000 17,500 20,500 31,000 235,000 Project A O Project B years years Which project should the company accept?

Problem 8-25 Profitability Index versus NPV (L03) Consider projects A and B with the following cash flows: A B Co -$44 -69 C1 +$ 28 +38 C₂ +$ 28 +$ 28 +38 +38 B a-1. What is the NPV of each project if the discount rate is 12%? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. a-2. Which project has the higher NPV? b-1. What is the profitability index of each project? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. a-2. Which project has the higher NPV? b-2. Which project has the higher profitability index? c. Which project is most attractive to a firm that can raise an unlimited amount of funds to pay for its investment projects? d. Which project is most attractive to a firm that is limited in the funds it can raise? a-1. NPV of each project if the discount rate is 12% a-2. Which project has the higher NPV? b-1. Profitability index of each project b-2. Which project has the higher profitability index? c. Which…

8 nts -02:47:13 What is the IRR of the following set of cash flows? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Year O 1 2 WN Cash Flow -$ 17,100 7,800 9,100 7,600 > Answer is complete but not entirely correct. IRR 17.25 %

Exhibit 2.3A Examp'e Comparing Two Projects Using the Payback Method Project A Project B Formulas Investment Annual saving 5750,000 5215,000 $250.000 580,000 Project A Payback 07/D8) Project B Payback (7/P8) Payback Period" Rate of Return"* Project A: Rate of Return (06/D7) Project D. Rate of Return (F8/P7) Accept/Reject Exclanetion Project A Accept/Reject Accept is Payback<5 Years and Rate of Return 15% Project B * Note: Parbnck does not use she time valce of money ** Note: Rate of returnis reciprocalof Fayback

Problem 5-1 Calculating Payback Period and NPV Janina, Incorporated, has the following mutually exclusive projects.    Year Project A Project B 0 −$ 30,000 −$ 33,000 1 17,000 18,000 2 13,500 12,000 3 3,900 13,500    a-1. Calculate the payback period for each project. (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.)             a-2. If the company's payback period is two years, which, if either, of these projects should be chosen?       multiple choice 1 Project A Project B Both projects Neither project    b-1. What is the NPV for each project if the appropriate discount rate is 15 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)            b-2. Which, if either, of these projects should be chosen if the appropriate discount rate is 15 percent?…

QUESTION 6 Seaborn Co. has identified an investment project with the following cash flows. Year Cash Flow $950 1,050 1,320 1,200 1 2 3 4 If the discount rate is 10 percent, what is the present value of these cash flows? 3542.76 3578.84 3418.66 4470.00 3847.03 Click Save and Submit to save and submit. Click Save All Answers to save all answers. SEP 28 30 tv ♫ A

2. NET firm is trying to decide between five mutually exclusive one- year projects. Project 1 Project 2 Project 3 Project 4 Project 5 Return Probability of return occurring 16 20 -16 36 48 -8 16 24 -40 0 100 1.0 1.0 0.25 0.50 0.25 0.25 0.50 0.25 0.10 0.60 0.30 Remember to regularly save your work Sheet 8 of 10 Module Code: ACF15084 Please work out the likely outcome for each project and discuss whether you can make informed decision according to this.

QUESTION 8 The INTERNAL RATE OF RETURN for the project shown above is: O 3.92% O 13.25 O 15.17% 9 21.22% O No IRR QUESTION 9

3/11Peston No. 03 This is a subjective question, hen 9-87185 023/21/26-2021 Calculate the IRR for a project having the following cashflows: following 85-2023 Year 2 3 4 (RS) 20123n19 27,000 7,500 7,500 202 The e The exact value is not required, just the range in which the IRR lies. Do the calculations manually. Don't use Excel. 7,500 7,500 7,500 20212 Just the 202 hence you have to write your answer in the Text Field given below. Cashflow [3] 5 202123nt019-87185-