help me pleaseand happy diwali Given the cash flows and information in the table below. Which alternative do youchoose (mutually exclusive)?MARR6%Life (years)4AВDInitial Cost11,00013,50014,0008400CF, years 1-4PW B4000450048803000$13,860 $15,593 $16,910 $10,395B/C1.261.161.211.24А-DB-DC-DВ-АC-AC-BB/C1.331.021.160.691.02 2.63

Answered: Given the cash flows and information in…

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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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
Use the following information Year 0 1 2 3 Cash flow -$1000 $300 $500 $700 WACC= 8.0% Calculate: a) NPV b) IRR c) Payback d) MIRR e) EAA
Determine the ERR (External rate of return) of the cash flows if external rate (e) is given as %19. Year Cash Flow 0 -3000 1 2000 2 4000 3 -1000 4 3000 5 4000 6 -5000 7 9000 Select one: a. 0.2988 b. 0.2638 c. 0.2565 d. 0.3073 e. 0.2783 f. 0.3491
Assume that you are looking at 3 perpetuities. P1 has annual cash flows of $850 in Yeata 1 through infinity (1-infinity) and present value at Year 0 of $10,119.047619. P2 has annual cash flows of $620 in Yeara 11 through infinity (11-infinity) and same effective rate as P1. P3 has annual cash flows of $480 in Years 25 through infinity (25-infinity) and same effective rate as P1 and P2. Determine the value of all three perpetuities when evaluated at Year 35.
For the cash flows shown, the correct equation for FW2 using the ROIC method at the reinvestment rate of 20% per year is:a. [10,000(1+ i'' ) + 6000](1.20) - 8000b. [10,000(1.20) + 6000(1+i'' )](1.20) - 8000c. [10,000(1.20) + 6000](1.20) - 8000d. [10,000(1.20) + 6000](1+ i'' ) - 8000
What is the present value of the following cash flow stream at a rate of 12.00%? Years: 0 1 2 3 4 CFs: $0 $75 $225 $0 $300 Select one: a. $511.28 b. $402.03 c. $546.24 d. $441.36 e. $436.99
Consider the mixed streams of cash flows shown in the following table. YEAR A B1 $50,000 $10,0002 $40,000 $20,0003 $30,000 $30,0004 $20,000 $40,0005 $10,000 $50,000 Totals $150,000 $150,000 (a) Find the present value of each stream using a 15% discount rate(b) Compare the calculated present values and discuss them in light of the fact that the undiscounted cash flows total $150,000 in each case.
The following table indicates the net cash flows of a capital asset: Year Net Cash Flow 0 $-159,000 1 $59,000 2 $59,000 3 $59,000 4 $59,000 Do not enter dollar signs or commas in the input boxes. Round your answer to 2 decimal places. Calculate the cash payback period using the formula method. Payback: Answer years
Assuming today is 1st January 2021. Date Cash flows (Rs.) 01-Jan-21 (900,000 ) 31-Dec-21 0 31-Dec-22 240,000 31-Dec-23 320,000 31-Dec-24 490,000 31-Dec-25 250,000 31-Dec-26 345,000 Cost of Capital = 8% Required: Net Present Value (NPV) Payback period (Simple and discounted) Internal Rate of Return (IRR) Solve At Excel.
What is the present value of the following cash flow stream at a rate of 6.50%? Years: 0 1 2 3 4 CFs: $0 $77 $240 $0 $285 Group of answer choices $505.44 $456.17 $433.37 $411.88 $480.02
Xander Inc. has prepared the following sensitivity analysis: Line Item Description Amount Amount Amount Estimated Annual Net Cash Flow $500,000 $600,000 $700,000 Present value of annual net cash flows (× 4.487) $2,243,500 $2,692,200 $3,140,900 Present value of residual value 50,000 50,000 50,000 Total present value $2,293,500 $2,742,200 $3,190,900 Amount to be invested (3,000,000) (3,000,000) (3,000,000) Net present value $(706,500) $(257,800) $190,900 In addition, it has assigned the following likelihoods to the three possible annual net cash flows: $500,000, 70%; $600,000, 20%; and $700,000, 10%. Based on an expected value analysis, which of the following statements is accurate? a. The expected value of the annual net cash flow is $540,000, and the project should be accepted. b. The expected value of the annual net cash flow is $660,000, and the project should be accepted. c. The expected value of the annual net cash flow is $660,000, and the project…
Consider the following information:· Net income = $100 000· Gross income = $300 000· Change in book value of assets = ($50 000)· Cost of equity = 12 per centUsing the discounted cash flow model, what would be the present value of free cash flows at t+1?

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