CHAPTER 8 GRADED HOMEWORK A Saved 00 Consider the following two mutually exclusive projects: Year 0...
11. NPV versus IRR Consider the following two mutually exclusive projects: Year Cash Flow (X) Cash Flow (Y) -$23,900 -$23,900 13,100 9,300 9,480 10,620 7,890 11,180 Sketch the NPV profiles for X and Y over a range of discount rates from 0 to 25 percent. What is the crossover rate for these two projects?
CHAPTER 8 GRADED HOMEWORK Saved For the given cash flows, suppose the firm uses the NPV decision rule. 10 points Cash Flow -$ 157,300 74,000 87,000 46,000 ( 8 00:38:53 eBook a. At a required return of 9 percent, what is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. At a required return of 21 percent, what is the NPV of the project? (A negative answser should...
Consider the following two mutually exclusive projects: Year 0 Cash Flow (X) -$15,600 6,740 7,320 4,840 Cash Flow (Y) -$15,600 7,350 7,700 3,690 3 a. What is the IRR of Project X? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the IRR of Project Y? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What...
Consider the following two mutually exclusive projects: Year © 1 2 3 Cash Flow (X) Cash Flow (Y) -$15,900 -$15,900 6,710 7,290 7,290 7,730 4,810 3,630 What is the IRR of Project X? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) IRR What is the IRR of Project Y? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) IRR...
Consider the following two mutually exclusive projects: Year Cash Flow (X) -$15,300 6,770 7,350 4,870 Cash Flow (Y) - $15.300 7,410 7,670 3,750 WN a. What is the IRR of Project X? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the IRR of Project Y? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) c. What...
Consider the following two mutually exclusive projects: Year Cash Flow (X) -$20,800 9,050 9,500 9,000 Cash Flow (Y) 220,800 10,500 8,000 8,900 WN- Calculate the IRR for each project. (Do not round Intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) IRR Project X Project Y What is the crossover rate for these two projects? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Crossover...
Piercy, LLC, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$54,000 -$54,000 30,000 17,600 24,000 21,600 18,000 26,000 12,800 25,600 6-1. What is the IRR for each of these projects? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a-2. If you apply the IRR decision rule, which project should the company accept? b-1. Assume the required return is 14 percent. What is...
Piercy, LLC, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$54,000 -$54,000 30,000 17,600 24.000 21,600 18.000 26,000 12,800 25,600 8-1. What is the IRR for each of these projects? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a-2. If you apply the IRR decision rule, which project should the company accept? b-1. Assume the required return is 14 percent. What is...
Consider the following two mutually exclusive projects: Year O - N Cash Flow (A) Cash Flow (B) -$427,000 -$41,000 43,000 20,600 63,000 13,100 80,000 19,600 542,000 16,400 2 + The required return on these investments is 13 percent. a. What is the payback period for each project? (Do not round intermediate calculations and round your answers 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...
Piercy, LLC, has identified the following two mutually exclusive projects: Year 0 Cash Flow (A) Cash Flow (B) -$55,000 -$55,000 31,000 18,500 25,000 22,500 18,500 27,000 13,000 25,500 ĐWN a-1. What is the IRR for each of these projects? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a-2. If you apply the IRR decision rule, which project should the company accept? b-1. Assume the required return is 11 percent....