A firm is considering two mutually exclusive projects, X and Y, with the following cash flows: 1 2 3 4 0 Project X -$1,000 $100 $280 $370 $750 Project Y -$1,000 $900 $110 $45 $45 The projects are equally risky, and their WACC is 11%. What is the MIRR of the project that maximizes shareholder value? Do not round intermediate calculations. Round your answer to two decimal places. %
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- A firm is considering two mutually exclusive projects, X and Y, with the following cash flows: 0 1 2 3 4 Project X -$1,000 $90 $320 $430 $700 Project Y -$1,000 $1,000 $100 $45 $55 The projects are equally risky, and their WACC is 10%. What is the MIRR of the project that maximizes shareholder value? Do not round intermediate calculations. Round your answer to two decimal places.Finance A firm is considering two mutually exclusive projects, X and Y, with the following cash flows: 0 1 2 3 4 Project X -$1,000 $110 $280 $430 $750 Project Y -$1,000 $900 $110 $55 $50 The projects are equally risky, and their WACC is 9%. What is the MIRR of the project that maximizes shareholder value? Do not round intermediate calculations. Round your answer to two decimal places. %Queens Soliderate is considering two mutually exclusive projects. The firm, which has a 12% cost of capital, has estimated its cash flows as shown in the following table. Project A Project B Initial investment (CF0) $130,000 $85,000 Year (t) Cash inflows (CFt) 1 $25,000 $40,000 2 35,000 35,000 3 45,000 30,000 4 50,000 10,000 5 55,000 5,000 a. Calculate the NPV of each project, and assess its acceptability. b. Calculate the IRR for each project, and assess its acceptability. Required to answer. Single line text.
- A firm has two mutually exclusive investment projects to evaluate. The projects have the following cash flows: Time Cash Flow Cash Flow Y C $95,000 -$70.000 35,000 40.000 55,000 40,000 3 60.000 40.000 40.000 10.000 9% , what is the EAA of the project that adds the most value to the firm? Do not round intermediate calculations, Round vour answer Proiects and Y are equally risky and may be reneated indefinitely, If the firm's WACC. the nearest dollar , whose EAA -s Choose Project -Select-The Webex Corporation is trying to choose between the following two mutually exclusive designprojects: Year Net Cash Flow Project - I($) Net Cash Flow Project - II($) 0 (53,000) (16,000) 1 27000 9100 2 27000 9100 3 27000 9100 (a) If the required return is 10% and the company applies the Profitability Index decision rule,which project should the firm accept?(b) If the company applies the Net Present Value decision rule, which project should it take?(c) Explain why your answers in (a) and (b) are different(d) Calculate the Internal Rate of Return of both projects.A firm has two mutually exclusive investment projects to evaluate. The projects have the following cash flows: Time After-tax Cash Flow X After-tax Cash Flow Y 0 -$100,000 -$75,000 1 30,000 40,000 2 50,000 40,000 3 60,000 40,000 4 - 40,000 5 - 5,000 Projects X and Y are equally risky and may be repeated indefinitely. If the firm’s WACC is 12%, what is the EAA of the project that adds the most value to the firm? Do not round intermediate calculations. Round your answer to the nearest dollar. Choose Project , whose EAA = $
- Thomas Company is considering two mutually exclusive projects. The firm, which has a cost of capital of 14%, has estimated its cash flows as shown in the following table: Project A Project B Initial investment (CF0) $150,000 $83,000 Year (t) Cash inflows (CFt) 1 $20,000 $45,000 2 $35,000 $25,000 3 $40,000 $35,000 4 $50,000 $10,000 5 $70,000 $15,000 a. Calculate the NPV of each project, and assess its acceptability. b. Calculate the IRR for each project, and assess its acceptability.A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: Project S -$1,000 $899.96 $240 $15 $5 Project L -$1,000 $10 $250 $380 $843.66 The company's WACC is 10.0%. 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.A firm has 10 million shares outstanding with a current market price of P20 per share. There is one investment project available to the firm. The initial investment of the project is P20 million, and the NPV of the project is P10 million. What will be the firm’s stock price if capital markets fully reflect the value of undertaking the project? a.P19b.P20c.P21d.P22
- A firm has two mutually exclusive investment projects to evaluate. The projects have the following cash flows: Time Cash Flow X Cash Flow Y 0 -$80,000 -$70,000 1 30,000 35,000 2 55,000 35,000 3 70,000 35,000 4 - 35,000 5 - 5,000 Projects X and Y are equally risky and may be repeated indefinitely. If the firm’s WACC is 7%, what is the EAA of the project that adds the most value to the firm? Do not round intermediate calculations. Round your answer to the nearest dollar. Choose Project , whose EAA = $A firm is considering two mutually exclusive projects, X and Y, with the following cash flows: 0 1 2 3 4 Project X -$1,000 $90 $320 $430 $700 Project Y -$1,000 $1,000 $100 $45 $55 The projects are equally risky, and their WACC is 10%. What is the MIRR, Payback Period or Discount Payback Period of project X and project Y. Note: DO NOT SOLVE ON EXCELA company is considering mutually exclusive projects. The free cash flows associated with these projects are as follows: Project A Project B Initial outlay -$100,000 -$100,000 Year 1 $32,000 $0 Year 2 $32,000 $0 Year 3 $32,000 $0 Year 4 $32,000 $0 Year 5 $32,000 $200,000 The required rate of return on these projects is 11%. They are of equal risk. What is each project’s MIRR? Which project should be chosen? Is it possible for conflicts to exist between NPV and IRR when independent projects are being evaluated? Explain your answer