
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:Given the following cash flows for two mutually exclusive projects, and a required rate of return of 12%, what is the
EAA for Project A?
Year
Project A
Project B
-300,000
-300,000
1
150,000
70,000
150,000
70,000
80,000
120,000
80,000
120,000
120,000
60,000
69,055
19,086
20,179
O 78,468
O 61,292
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- You put 491-28 why is it 28 and not - 175?? Can you explain that please?arrow_forwardA Company is considering two mutually exclusive projects whose expected net cash flows are in the table below. The company's WACC is 15%. What is the NPV for Project Y? What is the NPV for Project Z? What is the IRR for Project Y? What is the IRR for Project Z? Which Project, if any, should you choose? Time Project Y Project Z 0 $(420.00) $(950.00) | $(572.00) $270.00 2 $(189.00) $270.00 3 $(130.00) $270.00 4 $1,300.00 $ 270.00 5 $720.00 $270.00 6 $980.00 $270.00 7 $(225.00) $270.00 Please show in excel I think im getting the wrong valuesarrow_forwardE12.4arrow_forward
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