Homework Answers
| Return | NPV (X) | NPV (Y) |
| 0% | $8,020.00 | $7,860.00 |
| 5% | $5,071.20 | $4,997.52 |
| 10% | $2,551.62 | $2,549.21 |
| 15% | $380.67 | $437.41 |
| 20% | ($1,504.17) | ($1,398.15) |
| 25% | ($3,152.00) | ($3,004.80) |
NPV can be calculated using the same function in excel
NPV = NPV(return, CF1, CF2, CF3) + CF0
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Consider the following two mutually exclusive projects. What is the IRR for each project? What is...
Garage, Inc., has identified the following two mutually exclusive projects. a. What is the IRR for each project? b. If...
Garage, Inc., has identified the following two mutually exclusive projects. a. What is the IRR for each project? b. If the required return is 11 percent, what is the NPV for each project? c. What is the crossover rate between these two projects? Year 0 Year 1 Year 2 Year 3 Year 4 (43,500) 21.400 18,500 13,800 7,600 (43,500) 6,400 14,700 22,800 25,200 Required return 11% Complete the following analysis. Do not hard code values in your calculations. You must...
All answers must be entererd as formulas CHAPTER 8 0 Seved Help Save & Exit Submit...
All
answers must be entererd as formulas
CHAPTER 8 0 Seved Help Save & Exit Submit Consider the following two mutually exclusive projects. What is the IRR for each project? What is the crossover rate between the two projects? What is the NPV for each project at the various interest rates in cells C27 to C32? Annual cash flows: Year 0 Year 1 Year 2 Year 3 $ (24,000) 10,620 10,900 10,500 (24,000) 12,100 9,360 10,400 Complete the following analysis....
please use excel formula, Thank You in advance Garage, Inc., has identified the following two mutually...
please use excel formula, Thank You in advance
Garage, Inc., has identified the following two mutually exclusive projects. a. What is the IRR for each project? b. If the required return is 11 percent, what is the NPV for each project? c. What is the crossover rate between these two projects? A 0 Year o Year 1 Year 2 Year 3 Year 4 0 (43,500) 21,400 18,500 13,800 7,600 $ (43,500) 6,400 14,700 22,800 25,200 0 $ 0 Required return...
ON EXCEL The director of capital budgeting for Giant Inc. has identified two mutually exclusive projects,...
ON EXCEL
The director of capital budgeting for Giant Inc. has identified two mutually exclusive projects, L and S, with the following expected net cash flows and a required rate of return of 10 percent: Expected Net Cash Flows Year Project S Project L ($210,000) 0 ($161,000) 90,000 10,000 - 0 20,000 60,000 80,000 20,000 60,000 + 90,000 90,000 10,000 Build an automatic spread sheet that calculates: 1. the NPV of both projects with 2 different methods (NPV of excel...
8.11 NPV versus IRR Consider the following cash flows on two mutually exclusive projects for the...
8.11 NPV versus IRR Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation (BRC). Both projects require an annual return of 14 percent. Main Page Year Deepwater Fishing New Submarine Ride Incremental (Ride-Fishing) 0 $(850,000.00) $(1,650,000.00) $(800,000.00) 1 $320,000.00 $810,000.00 $490,000.00 2 $470,000.00 $750,000.00 $280,000.00 3 $410,000.00 $690,000.00 $280,000.00 Discount Rate IRR NPV As a financial analyst for BRC, you are asked the following questions: a. If your decision rule is to accept the...
11. NPV versus IRR Consider the following two mutually exclusive projects: Year Cash Flow (X) Cash...
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?
Intro You've estimated the following cash flows (in $ million) for two mutually exclusive projects: Year...
Intro You've estimated the following cash flows (in $ million) for two mutually exclusive projects: Year Project A Project B 0 -28 -43 1 30 45 2 40 50 Attempt 1/5 for 10 pts. Part 1 What is the crossover rate, i.e., the discount rate at which both projects have the same NPV? The crossover rate is the discount rate at which both projects have the same NPV: NPV(A) = NPV(B) ⇔ NPV(A) - NPV(B) = 0 ⇔ NPV(A-B) =...
Calculating NPV IRR and the crossover PAGE LAYOUT FORMULAS DATA REVIEW INSERT HOME FILE -1 AA...
Calculating NPV IRR and the crossover PAGE LAYOUT FORMULAS DATA REVIEW INSERT HOME FILE -1 AA 6 Conditional Formatas Cell Formatting Table Styles A Alignment Number Paste BIVA apped Font Clipboard AL eBook References Garage, Inc., has identified the following two mutually exclusive projects a. What is the IRR for each project? b. If the required return is 11 percent, what is the NPV for each project? c. What is the crossover rate between these two projects? Year 0 Year...
IRR and NPV A company is analyzing two mutually exclusive projects, S and L, with the...
IRR and NPV A company is analyzing two mutually exclusive projects, S and L, with the following cash flows: 0 1 2 3 4 Project S -$1,000 $879.99 $260 $15 $10 Project L -$1,000 $0 $260 $380 $789.53 The company's WACC is 10.0%. What is the IRR of the better project? (Hint: The better project may or may not be the one with the higher IRR.) Round your answer to two decimal places. NPV A project has annual cash flows...
Canfly Airlines is considering two mutually exclusive projects, Project A and Project B. The projects have...
Canfly Airlines is considering two mutually exclusive projects, Project A and Project B. The projects have the following cash flows (in millions of dollars): Year Project A Cash Flow Project B Cash Flow 0 -$4.0 -$4.5 1 2.0 1.7 2 3.0 3.2 3 5.0 ? The crossover rate of the two projects’ NPV profiles is 9 percent. What is the cash flow for Project B at t = 3? (Ans: 5.79 million)
Garage, Inc., has identified the following two mutually exclusive projects. a. What is the IRR for each project? b. If the required return is 11 percent, what is the NPV for each project? c. What is the crossover rate between these two projects? Year 0 Year 1 Year 2 Year 3 Year 4 (43,500) 21.400 18,500 13,800 7,600 (43,500) 6,400 14,700 22,800 25,200 Required return 11% Complete the following analysis. Do not hard code values in your calculations. You must...
All
answers must be entererd as formulas
CHAPTER 8 0 Seved Help Save & Exit Submit Consider the following two mutually exclusive projects. What is the IRR for each project? What is the crossover rate between the two projects? What is the NPV for each project at the various interest rates in cells C27 to C32? Annual cash flows: Year 0 Year 1 Year 2 Year 3 $ (24,000) 10,620 10,900 10,500 (24,000) 12,100 9,360 10,400 Complete the following analysis....
please use excel formula, Thank You in advance
Garage, Inc., has identified the following two mutually exclusive projects. a. What is the IRR for each project? b. If the required return is 11 percent, what is the NPV for each project? c. What is the crossover rate between these two projects? A 0 Year o Year 1 Year 2 Year 3 Year 4 0 (43,500) 21,400 18,500 13,800 7,600 $ (43,500) 6,400 14,700 22,800 25,200 0 $ 0 Required return...
ON EXCEL
The director of capital budgeting for Giant Inc. has identified two mutually exclusive projects, L and S, with the following expected net cash flows and a required rate of return of 10 percent: Expected Net Cash Flows Year Project S Project L ($210,000) 0 ($161,000) 90,000 10,000 - 0 20,000 60,000 80,000 20,000 60,000 + 90,000 90,000 10,000 Build an automatic spread sheet that calculates: 1. the NPV of both projects with 2 different methods (NPV of excel...
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?
Calculating NPV IRR and the crossover PAGE LAYOUT FORMULAS DATA REVIEW INSERT HOME FILE -1 AA 6 Conditional Formatas Cell Formatting Table Styles A Alignment Number Paste BIVA apped Font Clipboard AL eBook References Garage, Inc., has identified the following two mutually exclusive projects a. What is the IRR for each project? b. If the required return is 11 percent, what is the NPV for each project? c. What is the crossover rate between these two projects? Year 0 Year...
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