Give typing answer with explanation and conclusion Two mutually exclusive projects are under consideration:YearProject A0-$6,07512,45022,45032,4502,4502,450Project B-$10,5003,0003,5004,00044,50055,000Which project should be selected if the simple payback method isused to make the determination?O A; its payback period is shorterO B; its payback period is longerO Not enough information

Name: Give typing answer with explanation and conclusion Two mutually exclus
Uploaded: 2024-03-20T06:50:59.000Z
Channel: Bartleby
Description: Give typing answer with explanation and conclusion Two mutually exclusive projects are under consideration:YearProject A0-$6,07512,45022,45032,4502,4502,450Project B-$10,5003,0003,5004,00044,50055,000Which project should be selected if the simple pay

Pay Back period is that under which investor will return his invested amount without any income.…

Business

Finance

Two mutually exclusive projects are under consideration: Year 0 1 3,000 2 3,500 3 4,000 4 4,500 5 5,000 Which project should be selected if the simple payback method is used to make the determination? A; its payback period is shorter B; its payback period is longer Not enough information Project A Project B -$6,075 -$10,500 2,450 2,450 2,450 2,450 2,450

Two mutually exclusive projects are under consideration: Year 0 1 3,000 2 3,500 3 4,000 4 4,500 5 5,000 Which project should be selected if the simple payback method is used to make the determination? A; its payback period is shorter B; its payback period is longer Not enough information Project A Project B -$6,075 -$10,500 2,450 2,450 2,450 2,450 2,450

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter26: Capital Investment Analysis

Section: Chapter Questions

Problem 2CMA: Staten Corporation is considering two mutually exclusive projects. Both require an initial outlay of...

See similar textbooks

Similar questions

Janina, Incorporated, has the following mutually exclusive projects. Year Project A Project B 0 −$ 30,000 −$ 33,000 1 17,000 18,000 2 13,500 12,000 3 3,900 13,500 a-1. Calculate the payback period for each project. (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) a-2. If the company's payback period is two years, which, if either, of these projects should be chosen? multiple choice 1 Project A Project B Both projects Neither project b-1. What is the NPV for each project if the appropriate discount rate is 15 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Projects Y and Z are mutually exclusive projects. Assume the company has a WACC of 14%. Year Project Y Project Z 0 -$1,500 -$1,500 1 200 900 2 400 600 3 600 300 4 1,000 200 What is the NPV of project Y? What is the NPV of project Z? At what WACC should the company be indifferent whether to accept or reject project Z?
Determine which of the following independent projects should be selected for investment if a maximum of $240,000 is available and the MARR is 10% per year. Use the PW method to evaluate mutually exclusive bundles to perform your analysis. Project Investment, $ NCF, $/Year Life, Years A −100,000 50,000 8 B −125,000 24,000 8 C −120,000 75,000 8 E −220,000 39,000 8 F −200,000 82,000 8
Project A has a required return of 9.2 percent and cash flows of -$87,000, $32,600, $35,900, and $43,400 for Years 0 to 3, respectively. Project B has a required return of 12.7 percent and cash flows of -$85,000, $14,700, $21,200, and $89,800 for Years 0 to 3, respectively. Which project(s) should you accept based on net present value if the projects are mutually exclusive? Select one: A. Accept either one, but not both B. Accept both projects C. Accept Project A and reject Project B D. Reject Project A and accept Project B E. Reject both projects
The following information is available on two mutually exclusive projects. Project Year 0 Year 1 Year 2 Year 3 Year 4 A -$700 $200 $300 $400 $500 B -$700 $600 $300 $200 $100 If the required rate of return is 10%, which project should be selected using the net present value (NPV) method? Group of answer choices A B
Novell, Inc., has the following mutually exclusive projects. Year Project A Project B 0 –$21,000 –$24,000 1 12,500 13,500 2 9,000 10,000 3 3,000 9,000 a-1. Calculate the payback period for each project. (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) a-2. If the company's payback period is two years, which, if either, of these projects should be chosen? multiple choice 1 Project A Project B Both projects Neither project b-1. What is the NPV for each project if the appropriate discount rate is 17 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
The following information is available on two mutually exclusive projects. Project Year 0 Year 1 Year 2 Year 3 Year 4 A -$700 $200 $300 $400 $500 B -$700 $600 $300 $200 $100 If the required rate of return is 10%, which project should be selected using the internal rate of return (IRR) method? Group of answer choices A B
Lopez Industries has identified the following two mutually exclusive capital investment projects: Year Project A Project B 0 -16000 -15500 1 400 12500 2 800 8000 3 13000 800 4 14000 800 What is the IRR for each of these projects? If you apply the IRR decision rule, which project should the company accept? Is this decision necessarily correct?
Mutually exclusive projects and NPV you have been assigned the task of evaluating two mutually exclusive projects with the following projected cash flows. year. Project A (cash flow) Project B 0 $(102,000) $(102,000) 1 31,000 0 2 31,000 0 3 31,000 0 4 31,000 0 5 31,000 240,000 if the appropriate discount rate on these is 11 percent, which would be chosen and why? the NPV of project A is $
NPV and project selection Project A Project B initial investment -50000 -60000 Year 1 5000 4000 Year 2 6000 7000 Year 3 7000 14000 Year 4 9000 13000 Year 5 4000 4000 Year 6 9000 9000 Year 7 5000 10000 Year 8 8000 8000 Year 9 9000 9000 Year 10 5000 7000 Calculate the NPV of each project with a 4% discount rate. Which project(s) will be undertaken if all are mutually exclusive (still 4% discount)? Which project(s) will be undertaken if all are independent and the firm only has $125k in available capital (still 4% discount)? Which projects will be undertaken if all are independent and the firm’s cost of capital is 3%? Please do in Excel and show steps
The Webex Corporation is trying to choose between the following two mutually exclusive designprojects: Year Net Cash Flow Project - I($) Net Cash Flow Project - II($) 0 (53,000) (16,000) 1 27000 9100 2 27000 9100 3 27000 9100 (a) If the required return is 10% and the company applies the Profitability Index decision rule,which project should the firm accept?(b) If the company applies the Net Present Value decision rule, which project should it take?(c) Explain why your answers in (a) and (b) are different(d) Calculate the Internal Rate of Return of both projects.
Bausch Company is presented with the following two mutually exclusive projects. The required return for both projects is 20 percent. Year Project M Project N 0 -$142,000 -$363,000 1 64,300 148,500 2 82,300 188,000 3 73,300 133,500 4 59,300 118,000 a. What is the IRR for each project? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. Which, if either, of the projects should the company accept? % a. Project M % Project N b. Project M Project N c. Accept project