for the following cash flow, if i; = ib = 12% and MARR= 15%, 1. Determine i* by using MIRR? (final answer) 2. Is the project acceptable? 614,600 386,000 92,800 01 2 3 5- N End of Year(EOY) 42,500 202,200 450,000
Q: Jill's Sandwiches Ltd. is considering a project that has the following cash flow data. What is this…
A: Internal ROR(IRR) is rate at which NPV(Net Present Value) of a project is zero. At IRR, discounted…
Q: Consider the following cash flows for two mutually exclusive capital investment projects. The…
A: Mutually exclusive projects are a set of projects out of which only one project can be accepted.
Q: An investor is presented with alternative projects, A and B with the following end-of-year cash…
A: Frist we need to calculate the Net present value(NPV) of each project. NPV is the difference between…
Q: Your company has a project avalable with the following cash flows: Year Cash Flow -$81,100 21,500…
A: Year Cash flow 0 -81100 1 21500 2 25000 3 30800 4 26000 5 19800 Required return = 14%
Q: Using the method of your choice calculate the Net Present Value of the following cash flows. Assume…
A: Net present value is the difference between the present value of cash inflow and present value of…
Q: Compute the NPV statistic for Project X given the following cash flows if the appropriate cost of…
A: NPV is calculated as present value of cash flows less initial investment
Q: The capitalized cost (CC) of the given project whose Cash Flow diagram is given below is closest to:…
A: As per the cash flow diagram given above it is clear that 50000 is invested in zero period and 2000…
Q: Using a MARR of 12%, find the external rate of return (ERR) for the following cash flow. Is this…
A: Calculation of ERR:ERR is 10.89%Present value of cash flow (outflow),
Q: Hart Corp. is considering a project that has the following cash flow data. What is the project's…
A: The modified internal rate of return is another technique or method under capital budgeting…
Q: A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the…
A: Year Cash flow 0 -148000 1 68000 2 71000 3 55000
Q: For the following cash flows, the project may have up to: Year 2 3 4 5 Cashflow -$500 $0 $0 $400…
A: ROR is the rate of return of project i.e. discount rate where present value of inflows equal present…
Q: E Click the icon to view the cash flows for the projects. More Info a) Compute the IRR for each…
A: Net present value (NPV) and internal rate of return (IRR) are the capital budgeting techniques used…
Q: Consider the two investments with the following sequences of cash flows. At Marr of 15%. What is the…
A: IRR refers to the annualized rate of return for a given project. Higher the IRR, better the…
Q: Below is the cash flow of project Alpha. (EOY: end of year) EOY Cash Flow 0 -$200,000 1 $25,000 2…
A: The net worth of the project after the deduction of the current worth of the cash outflows from the…
Q: Tropical Candy Inc are considering two mutually-exclusive projects, A and B. Their cash flows are…
A:
Q: A project has the following cash flows for years zero through 3, respectively: -$4,000, $1,100,…
A: Year Cash flow 0 -4000 1 1100 2 1500 3 900
Q: Suppose we have a project with the following cash flows: Outgoing: P150,000 at t = 0, P250,000 at t…
A: IRR may be calculated using the following excel formula
Q: Stern Associates is çonsidering a project that has the following cash flow data. What is the…
A: Payback period: It is the time required by the project to cover its initial cost of investment. The…
Q: Compute the NPV statistic for Project Y given the following cash flows if the appropriate cost of…
A: Cost of Capital is 10% To Find: NPV
Q: 5
A: Calculation of EAA for project A: Answer: Equivalent annual annuity (EAA) for project A is $20,179
Q: Judson's cost of capital is 12%, what is the project's NPV? Year Cash Flow in $ 0 ($1000) 1…
A: Net Present Value (NPV) is the sum of the present value of all the cash inflows and outflows.Please…
Q: Consider the following cash flows for two mutually exclusive capital investment projects. The…
A: PROJECT B Year Cash flows 0 -20000 1 6000 2 6000 3 6000 4 5400 5 5400 6 5400
Q: A project has the cash flows shown below. What is the Payback Period of this project? Year Cash Flow…
A: Payback period = years before payback period + (cumulative cash flow in the year before…
Q: Project A costs $41425 and has a WACC of 13%. It expected net cash inflows are as follows: Year: 0…
A: The initial investment amount is $41,425. The below expression can be used to calculate the MIRR:
Q: Donald's Inc. is evaluating a project that has the following annual free cash flows: Period Free…
A: Project IRR = Cash inflow / cash outflow
Q: Filter Corp. has a project available with the following cash flows: Year Cash Flow -$16,200 5,600…
A: Year Cash flow 0 -16200 1 5600 2 6900 3 6300 4 4700
Q: Compute the NPV for Project X and accept or reject the project with the cash flows shown below if…
A: A method of capital budgeting that helps to evaluate the present worth of cash flow and a series of…
Q: for the following cash flow, if i; = ib = 12% and MARR= 15%, 1. Determine i* by using MIRR? (final…
A: MARR = 15% i = 12% Cash Flows: Year Cash Flows 0 -450,000 1 -42,500 2 92,800 3…
Q: A company is considering a project with a cost of $248,000. The cash flows for the project are…
A: Project cost = $248,000 Required return of the project = 14.2%
Q: Mansi Inc. is considering a project that has the following cash flow data. What is the project's…
A: The Payback Period is one of the capital budgeting techniques. It is defined as the number of years…
Q: You are given the following cash flow for a project, and told that PW(8%) = $8,300 for this project.…
A: NPV is the sum of present value of future cashflow
Q: Tuttle Enterprises is considering a project that has the following cash flow and WACC data. The…
A: The net present value of a project is the present value of all the cash flows of that project…
Q: projects payback? Year Cash flows 1 3 $300 -$500 $150 $200
A: Payback period is the time taken to recover the cost of the investment. The payback period does not…
Q: Calculate the Net Present Value (NPV) of the following cash flow
A: Net present value = present value of future cash flows - initial cash outflows
Q: Justine Global Info Tech records the following cash flows at the end of each year a project. If the…
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: for the following cash flow, if i; = İb = 12% and MARR= 15%, 1. Determine i* by using MIRR? (final…
A: i = 12% MARR = 15% Cash Flows: Year Cash Flow 0 -450,000 1 -42,500 2 92,800 3 386,000…
Q: 25
A: PROJECT B Year Cash flows 0 (300,000.00) 1 150,000.00 2 150,000.00 3…
Q: Barry Inc. is considering a project that has the following cash flow and WACC data. What is the…
A: Future value factor = 0.0975 (9.75%) Initial cash outflow = $53,600 n = Period i.e. 5 Years
Q: Blinding Light Co. has a project available with the following cash flows: Year 1 2 3 4 5 Cash Flow…
A: Capital budgeting is a financial process for analyzing a capital investment project. It involves the…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- for the following cash flow, if i; = ib = 12% and MARR= 15%, 1. Determine i* by using MIRR? (final answer) 2. Is the project acceptable? 614,600 386,000 92,800 0 1 2 3 4 5 = N End of Year(EOY) 42,500 202,200 450,000Consider an investment project with the cash flows given in the table below. Compute the IRR for this investment. Is the project acceptable at MARR = 10%? The IRR for this project is %. (Round to one decimal place.) n 0 1 2 3 Cash Flow -$35,000 15,000 14,520 13,990Here are cash flows for a project under consideration. C(0)= -$8160, C(1)=6180, and C(2)=20280. What is the IRR of the project?
- onsider the following cash flows: C0=-$42 C1=+$38 C2=+$38 C3=+$38 C4=-$76 a. Which two of the following rates are the IRRs of this project?Which of the following comes closest to the net present value (NPV) of a project whose initial investment is $5 and which produces two cash flows: the first at the end of year 2 of $3 and the second at the end of year 4 of $7? The required rate of return is 13%? Select one: a. $1.84 b. $0 c. $1.64 d. $2.05 e. $2.26You've estimated the following cash flows (in $) for a project: A B 1 Year Cash flow 2 0 -3,000 3 1 900 4 2 1,300 5 3 1,606 The required return is 8.5%. 1. What is the IRR for the project? 2. What is the NPV of the project? 3. What should you do? Check all that apply: Accept the project based on its IRR Accept the project based on its NPV Reject the project based on its IRR Reject the project based on its NPV
- Consider the following projects: Cash Flows ($) Project D E CO00 C101 -11,700 23,400 -21,700 37,975 Assume that the projects are mutually exclusive and that the opportunity cost of capital is 12%. a. Calculate the profitability index for each project. b-1. Calculate the profitability-index using the incremental cash flows. b-2. Which project should you choose?Consider cash flows for the following investment projects (MARR = 15 %). Suppose that projects are mutually exclusive. Which project would you select based on AE criterion? Project A -3000 Project B -3500 ProjectC 4000 1400 1100 1500 2. 1650 1000 1500 3. 1300 1000 1800 1800 4 750 1000Given the following cash flows for project A: C0 = -1000, C1 = +600 ,C2 = +400, and C3 = +1500, calculate the payback period)
- Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$ 15,456 5,225 8,223 13,013 8,705 0 1 234 -$ 276,363 26,400 51,000 57,000 402,000 Whichever project you choose, if any, you require a 6 percent return on your investment. a. What is the payback period for Project A? Payback period b. What is the payback period for Project B? Payback period c. What is the discounted payback period for Project A? Discounted payback periodA project has the following cash flows set out below. What is the profitability index of this project if the relevant discount rate is 2 percent? Enter your final answer to two decimal places. Year Cash flow 0 -1,745 1 537 2 2,066 3 3,912Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 −$29,000 −$29000 1 14,400 4,300 2 12,300 9,800 3 9,200 15,200 4 5,100 16,800 a) What is the Internal Rate of Return (IRR) for each of these projects? b) Using the IRR decision rule, which project should the company accept? c) If the required return is 11 percent, what is the Net Present Value (NV) for each of these projects? d) Using the NPV decision rule, which project should the company accept? e) Why do you think the NPV and IRR rules do not agree on same project approval/rejection direction?