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- What is the expected NPV of the following decision tree? The net flow and associated probability is shown above and below each branch for the two-year project. a. -R18.72m b. -R5.56m c. R5.00m d. R16.12mDinaro Inc. is looking at an investment project that has an NPV of ($5,000). The hurdle rate is 8%.Giorgio Co. is looking at an investment project with an internal rate of return of 10.8%. The initial outlay for the investment is $90,000. The hurdle rate or minimum acceptable rate of return is 10.2%.
- Joliet Company is considering two alternative investments. The company requires an 18% return from its investments. Compute the IRR for both Projects and recommend one of them. For further instructions on internal rate of return in Excel, see Appendix C.Compute the IRR, NPV, PI, and payback period for the following two projects. Assume the required return is 12%.Calculate the NPV of the proposed investment, using the inputs suggested in this case. How sensitive is this NPV to future sales volume? *The answer is 15.7 million; please show me the work.
- Templetion typically evaluates investments in plant improvements using a 12 percent required rate of return. What are the NPVs for the two systems?Compute the IRR, NPV, PI, and payback period for the following two projects. Assume the required return is 12%. See the table attached.The chart below shows the initial investment and expected yearly payback for Project A and Project B Project A Project B Initial Investment $ 300,000 $ 450,000 Expected Yearly PayBack $ 45,000 $ 90,000 What is the Payback Period for Project A and Project B? What is the average ROI for Project A and Project B? Which Project should be chosen?
- A project has initial costs of $3,000 and subsequent cash inflows of $1350,275,875 and 1525 . The company's 10% cost of capital is an appropriate discount rate for this average risk project. Calculate the following: NPV IRR Profitability Index Please number/label each of your answers as shown above. Be sure to show your TVM function calculator inputs, and four decimal places.Calculate PB, DPB, NPV, IRR and PI for the following project with a discount rate of 12% - initial investment = 750,000, ncf yr 1 = 150,000, ncf yr 2 = 300,000, ncf yr 3 = 400,000, ncf yr 4 = 250,000, ncf yr 5 = 100,000A large company has the opportunity to select one of seven projects: A, B, C, D, E, F, G, or the null (Do Nothing) alternative. Each project requires a single initial investment as shown in the table below. Information on each alternative was fed into a computer program that calculated the IRR for each project as well as all the pertinent incremental IRR(s) as shown in the table below. For example, the IRR for Project A is 10% and the incremental IRR of Project C minus Project B (C-B) is 0.1%. For each value of MARR below indicate which project is preferred and the evaluations you made to arrive at this conclusion. Solve, a. MARR = 12%. b. MARR = 9.5%. c. MARR = 8%. d. MARR = 3.5%. e. MARR = 1.5%.
