Don't give answer in image Question 18 of 30<>-/0.0-$319,809-$427,4481129,300158,1902129,300172,8303129,300179,5004129,300138,8005129,300119,800a. Calculate the projects' NPV. (Enter negative amounts using negative sign e.g. -45.25. Do not round discountother intermediate calculations and final answer to 0 decimal places, e.g. 1,525.)The NPV of project A is $150124and project B is $b. Calculate the projects' IRR. (Round answer to 2 decimal places, e.g. 15.25%.)The IRR of Project A is% and Project B isc. Which project should be chosen based on NPV? Based on IRR? Is there a conflict?Cullumber should choose139951%.

Let's detail the step-by-step calculations for both NPV and IRR for each project, explaining the…

Answered: Question 18 of 30 < > -/0. 0 -$319,809…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter10: Project Cash Flows And Risk

Section: Chapter Questions

Problem 19PROB

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i=15% n=7 Initial Cost (A)100 (B)60 (C)80 Uniform Annual Benefit (A)26 (B)15 (C)17 a) Payback period : b) B/C: c) The best alternative based on ΔB/ΔC? please do fast asap
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Compute the net present value for each project. (Round answers to 0 decimal places, e.g. 125. If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Project Bono Project Edge Project Clayton Net present value $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places Save for Later
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A)Using the discount rate of 11% for this project and Npv model. Determine whether the company should reject/accept this project B) should the company accept or reject it using a discount of 14%
1/1/14 12/31/14 12/31/15 Accumulated benefit obligation $2,500,000 $2,600,000 $3,400,000 Projected benefit obligation 2,700,000 2,800,000 3,700,000 Plan assets (at fair value) 2,300,000 3,000,000 3,300,000 AOCL – net loss -0- 580,000 500,000 Settlement rate (for year) 10% 9% Expected rate of return (for year) 8% 7% Lockett’s contribution was $420,000 in 2015 and benefits paid were $275,000. Lockett estimates that the average remaining service life is 20 years. The actual return on plan assets in 2015 was $155,000. Assume that the actual return on plan assets in 2015 was $245,000. The unexpected gain on plan assets in 2015 was $32,000. $55,000. $35,000. $34,000. The corridor for 2015 was $300,000. The amount of AOCI-net loss amortized in 2015 was $33,333. $32,000. $14,000. $12,000.
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why preset value is different? PV of Cash flow = (CFAT × PVIFA @10%, 3 Years) = ($22,000 × 2.4869) PV of Cash flow = $54,711.8 PV of Residual value = (Residual value × PVIF @10%, 3 Years) = ($81,000 × 0.7513) PV of Residual value = $60,855.3

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