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- Tri Star, Inc., has the following mutually exclusive projects: Year Project A Project B 0 –$ 13100 –$ 8500 1 7300 3200 2 6300 2700 3 2,100 5100 Calculate the payback period for each project. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) If the appropriate discount rate is 9 percent, what is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)Bausch Company is presented with the following two mutually exclusive projects. The required return for both projects is 16 percent. Year Project M Project N 0 –$136,000 –$359,000 1 63,900 150,500 2 81,900 184,000 3 72,900 135,500 4 58,900 114,000 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.) PROJECT M IS 36.69% PROJECT N IS 24.21% 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.) PROJECT M IS $59,185.14 PROJECT N IS $57,253.65 c. Which, if either, of the projects should the company accept?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
- 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 –$139,000 –$356,000 1 63,600 152,000 2 81,600 181,000 3 72,600 137,000 4 58,600 111,000 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?Suppose you are offered a project with the following payments: Year Cash Flows 0 $ 9,800 1 −5,300 2 −4,000 3 −3,100 4 −1,700 a. What is the IRR of this offer? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. If the appropriate discount rate is 15 percent, should you accept this offer? c. If the appropriate discount rate is 21 percent, should you accept this offer? d-1. What is the NPV of the offer if the appropriate discount rate is 15 percent? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. d-2. What is the NPV of the offer if the appropriate discount rate is 21 percent? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.Which one of the following indicates a project should be accepted? 1. NPV = -$2,281 2. IRR = 13.8 percent; Required return = 14.5 percent 3. Discounted payback = 3.41 years; Required discounted payback = 3 years 4. None of the above
- A project has cash flows of –$148,000, $43,000, $87,000, and $44,000 for Years 0 to 3, respectively. The required rate of return is 11 percent. Based on the internal rate of return of what percent for this project, you should accept or reject the project. Enter your answer in the first blank as a percent rounded to 2 decimal places, e.g., 32.16. Also enter either "accept" or "reject" in the second blank.A project has cash flows of –$148,000, $43,000, $87,000, and $51,500 for Years 0 to 3, respectively. The required rate of return is 11 percent. Based on the internal rate of return of Blank 1 percent for this project, you should Blank 2 the project. Enter your answer in the first blank as a percent rounded to 2 decimal places, e.g., 32.16. Also enter either "accept" or "reject" in the second blank.The Dry Dock is considering a project with an initial cost of $108,915 and cash inflows for Years 1 to 3 of $37,200, $54,600, and $46,900, respectively. What is the IRR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
- Monroe, Inc., is evaluating a project. The company uses a 13.8 percent discount rate for this project. Cost and cash flows are shown in the table. What is the NPV of the project? Year0 ($11,368,000)1 $2,112,5892 $3,787,5523 $3,300,6504 $4,115,8995. $ 4,556,424 Round to two decimal places. For year 0 , its initial investment .The Burb Corporation is evaluating the following project. The CFO has determined that the appropriate risk-adjusted discount rate is 12%. Calculate the discounted payback period for the project. (Round to 3 decimals) Year CF 0 -40,000,000 1 4,000,000 2 20,000,000 3 20,000,000 4 11,000,000The Burb Corporation is evaluating the following project. The CFO has determined that the appropriate risk-adjusted discount rate is 12%. Calculate the payback period for the project. (Round to 3 decimals) Year CF 0 -40,000,000 1 4,000,000 2 20,000,000 3 20,000,000 4 11,000,000