No 1 a,b,c,d Calculate the Payback period and discounted pay back period of these projects! Whichproject should the company accept? What are the differences of payback period andC.discounted payback period in investment decision making? Which one is more reliable?Hitunglah Payback period and discounted payback period dari kedua projek! Projek yangmana harus diterima? Apakah perbedaan dari payback period and discounted paybackperiod pada pengambilan keputusan investasi? Yang mana yang lebih dapat dipercaya?d.At what discount rate would the company be indifferent between these two projects?Explain how you do the calculation! NO 1. (40 points) CRAYON corporation has identified the following two mutually exclusiveprojects:Perusahaan CRAYON mengidentifikasikan dua projek (saling eksklusif) sebagai berikut :YEARCash flow ( A)Cash flow ( B)-$300,000135,000-$300,000168,950283,900105,500393,20075,0004105,60055,6005115,60045,600a. What is the IRR for each of this project (range: 10-16%)? Using the IRR decision rule, whichproject should the company accept? How do you interpret IRR of a project?Berapakah IRR projek diatas (range:10-16%)? Dengan menggunakan pengambilan keputusanIRR, projek manakah yang harus diambil? Bagaimana anda mengartikan IRR dari sebuahprojek?b.If the required return is 15%, what is the NPV of these projects? Which project will thecompany choose if it applies the NPV decision rule? How do you interpret NPV of a project?

The capital budgeting is a tool or technique that helps to analyze the overall profitability of the…

Calculate the Payback period and discounted pay back period of these projects! Which project should the company accept? What are the differences of payback period and discounted payback period in investment decision making? Which one is more reliable? C. Hitunglah Payback period and discounted payback period dari kedua projek! Projek yang mana harus diterima? Apakah perbedaan dari payback period and discounted payback period pada pengambilan keputusan investasi? Yang mana yang lebih dapat dipercaya? d. At what discount rate would the company be indifferent between these two projects?

Calculate the Payback period and discounted pay back period of these projects! Which project should the company accept? What are the differences of payback period and discounted payback period in investment decision making? Which one is more reliable? C. Hitunglah Payback period and discounted payback period dari kedua projek! Projek yang mana harus diterima? Apakah perbedaan dari payback period and discounted payback period pada pengambilan keputusan investasi? Yang mana yang lebih dapat dipercaya? d. At what discount rate would the company be indifferent between these two projects?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Bruin, Inc., has identified the following two mutually exclusive projects:     Year Cash Flow (A) Cash Flow (B) 0 –$ 28,700 –$ 28,700 1 14,100 4,150 2 12,000 9,650 3 9,050 14,900 4 4,950 16,500    a-1 What is the IRR for each of these projects? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)    a-2 Using the IRR decision rule, which project should the company accept? Project A Project B a-3 Is this decision necessarily correct? Yes No b-1 If the required return is 12 percent, what is the NPV for each of these projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)    b-2 Which project will the company choose if it applies the NPV decision rule? Project A Project B    c.…
Bruin, Incorporated, has identified the following two mutually exclusive projects:     Year Cash Flow (A) Cash Flow (B) 0 −$ 28,000 −$ 28,000 1 13,400 3,800 2 11,300 9,300 3 8,700 14,200 4 4,600 15,800    a-1. What is the IRR for each of these projects? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)    b-1. If the required return is 10 percent, what is the NPV for each of these projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)    c. At what discount rate would the company be indifferent between these two projects? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
please answer second subpart because an expert already answered the first Bruin, Inc., has identified the following two mutually exclusive projects:     Year Cash Flow (A) Cash Flow (B) 0 –$ 28,700 –$ 28,700 1 14,100 4,150 2 12,000 9,650 3 9,050 14,900 4 4,950 16,500    a-1 What is the IRR for each of these projects? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)    a-2 Using the IRR decision rule, which project should the company accept? Project A Project B a-3 Is this decision necessarily correct? Yes No b-1 If the required return is 12 percent, what is the NPV for each of these projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)    b-2 Which project will the company choose if it applies the…
CRAYON corporation has identified the following two mutually exclusive projects: YEAR Cash flow ( A) Cash flow ( B) 0 -$300,000 -$300,000 1 68,950 135,000 2 83,900 105,500 3 93,200 75,000 4 105,600 55,600 5 115,600 45,600 What is the IRR for each of this project (range: 10-16%)? Using the IRR decision rule, which project should the company accept? How do you interpret IRR of a project? If the required return is 15%, what is the NPV of these projects? Which project will the company choose if it applies the NPV decision rule? How do you interpret NPV of a project? Calculate the Payback period and discounted pay back period of these projects! Which project should the company accept? What are the differences of payback period and discounted payback…
Only for d and e, subpart, a, b, and c has been answered here: https://www.bartleby.com/questions-and-answers/assume-a-rm300000-investment-and-the-following-cash-flows-for-two-products-year-product-x-product-y-/451dabc9-fd11-47c3-b65c-12ff5b7e32e5
Bates & Reid, LLC, has identified two mutually exclusive projects, A and B. Project A has a NPV of $14,050.47. Project B has cash flows as described below. Year Cash Flow B 0 -$77,000 1 35,000 2 25,000 3 25,000 4 25,000 If the WACC is 8%, then B’s NPV is _______ and therefore the firm should accept _________ $11,337.55; project B because NPVA > NPVB. $15,062.43; project B because NPVA < NPVB. $15,062.43; project A because NPVA < NPVB. The projects are equally profitable. $11,337.55; project A because NPVA > NPVB.
Bruin, Incorporated, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 −$ 28,500 −$ 28,500 1 13,900 4,050 2 11,800 9,550 3 8,950 14,700 4 4,850 16,300 a-1. What is the IRR for each of these projects? a-2. Using the IRR decision rule, which project should the company accept? multiple choice 1 Project A Project B a-3. Is this decision necessarily correct? multiple choice 2 Yes No b-1. If the required return is 11 percent, what is the NPV for each of these projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b-2. Which project will the company choose if it applies the NPV decision rule? multiple choice 3 Project A Project B c. At what discount rate would the company be indifferent between these two projects? (Do not round intermediate…
A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 01234 Project S-$1,000$869.10$260$5$10Project L-$1,000$0$250$420$831.87 The company's WACC is 8.5%. 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.
a company is deciding between two mutually exclusive projects. the cash flows are shown below. year 0 project a -$1,000 project b -$1,000 ywar 1 project a 550 project b 400 year 2 project a 550 projecy b 600 year 3 project a 550 project b 900 if the cosy of capital is 10% which project should the compsny select
A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 0 1 2 3 4 Project S -$1,000 $895.52 $240 $10 $10 Project L -$1,000 $5 $260 $400 $807.20 The company's WACC is 8.5%. 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.
Required Prepare journal entries for (a) the sale of equipment, (b) the allocation of its gain or loss, (c) the payment of liabilities at book value, and (d) the distribution of cash in each of the following separate cases: Equipment is sold for (1) $650,000; (2) $530,000; (3) $200,000 and partners with capital deficits pay their deficits in cash; and (4) $150,000 and partners with deficits do not pay their deficits. (Round to the nearest dollar.)
A company has a 13% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 0 1 2 3 4 5 6 7 Year 0 1 2 3 4 5 6 7 Project A -$300 -$387 -$193 -$100 $600 $600 $850 -$180 Project B -$405 $133 $133 $133 $133 $133 $133 $0 Open spreadsheet What is each project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations. Project A: $ fill in the blank 2 Project B: $ fill in the blank 3 What is each project's IRR? Round your answer to two decimal places. Project A: fill in the blank 4% Project B: fill in the blank 5% What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Round your answer to two decimal places. Do not round your intermediate calculations. Project A: fill in the blank 6% Project B: fill in the blank 7%…

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