As per rules I am answering the first 4 subparts of the question
Sub Part | Project X | Project Y | |
1 | Payback | 2.17 | 3.33 |
2 | NPV | 966.01 | -887.95 |
3 | IRR | 18.03% | 7.71% |
4 |
Accept Project X since it has greater NPV |
Workings
Year | Project X | Cumulative CF | Project Y | Cumulative CF |
0 | -10000 | -10000 | -10000 | -10000 |
1 | 6500 | -3500 | 3000 | -7000 |
2 | 3000 | -500 | 3000 | -4000 |
3 | 3000 | 2500 | 3000 | -1000 |
4 | 1000 | 3500 | 3000 | 2000 |
draw time line for answer a 9.6 Assume that you are the chief financial officer at...
draw time line for answer a Assume that you are the chief financial officer at Porter Memorial Hospital. The CEO has asked you to analyze two proposed capital investments-project X and project Y. Each project requires a net investment outlay of $10,000, and the opportunity cost of capital for each project is 12 percent. The projects' expected net cash flows are as follows: 9.6 Project X (S) (10,000) Year Project Y ($) (10,000) 6,500 1 3,000 3,000 3,000 3,000 3,000...
please solve and explain how to find IRR Only. and draw the time line for this problem! thanks! 9.6 Assume that you are the chief financial officer at Porter Memorial Hospital. The CEO has asked you to analyze two proposed capital investments-project X and project Y. Each project requires a net investment outlay of $10,000, and the opportunity cost of capital for each project is 12 percent. The projects' expected net cash flows are as follows: Year Project X ($)...
Please show all work & calculations. Assume that you are the chief financial officer at Porter Memorial Hospital. The CEO has asked you to analyze two proposed capital investments - Project X and Project Y. Each project requires a net investment outlay of $10,000, and the cost of capital for each project is 12 percent. The project's expected net cash flows are as follows: Year 0 1 Project X ($10,000) $6,500 $3,000 $3,000 $1,000 Project Y ($10,000) $3,000 $3,000 $3,000...
Table Tools References Mailings Review View Help Design Layout Tell me Problem 3 Assume that you are the CFO at Porter Memorial Hospital The CEO has asked you to analyze two proposed capital investments: Project X and Project Y. Each project requires a net investment outay of $10,000, and the cost of capital for each project is 12 percent The projects expected net cash flows are as follows: Pr t Y Year Project X $10,000 $3,000 $1,000 $10,000 $3,000 $3,000...
n y u MUCOLUNS I Deude controversy 5 - MICH... 5 s Question 10 4 pts Porter Memorial Hospital is considering two proposed capital investments, Project X and Project Y. Please see the data for the two projects in the attached Excel sheet and answer the following questions. Show your work in Excel. a) Calculate each project's net present value (NPV) and internal rate of return (IRR). b) Which project is financially acceptable? E TERES MILF LinkCase Report 3 Q10.xlsx...
You are a financial analyst for the Brittle Company. The director of capital budgeting has asked you to analyze two proposed capital investments: Projects X and Y. Each project has a cost of $10,000, and the cost of capital for each is 12%. The projects' expected net cash flows are shown in the table below. Expected Net Cash Flows Year Project X Project Y 0 – $10,000 – $10,000 1 6,500 3,500 2 3,000 3,500 3 3,000 3,500 4 1,000...
You are a Financial Analyst with ABC Ltd and the chief financial officer (CFO) requests you to evaluate two new capital budgeting proposals. Specifically, you are asked to provide a recommendation and also respond to a number of questions aimed at assessing your level of competence in capital budgeting process. Instructions are as follows: Provide an evaluation of two proposed projects, both with identical initial outlays of $400,000. Both of these projects involve additions to a client’s highly successful product...
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You are a financial analyst for the Ubuntu Inc. The director of capital budgeting has asked you to analyse two proposed mutually exclusive capital investment projects, projects X and Y. The cost of capital for each project is 1296.The projects, expected net cash flows are as follows 2. Expected Net Cash Flows Project X 0 $100,000 160,500 230,000 3 30,000 4 10,000 Required: 1. Calculate the payback period (0.5 mark) 2. Calculate the discounted payback period, (0.5 mark) 3. Calculate...
Your first assignment in your new position as assistant financial analyst at Caledonia Products is to evaluate two new capital-budgeting proposals. Because this is your first assignment, you have been asked not only to provide a recommendation but also to respond to a number of questions aimed at assessing your understanding of the capital-budgeting process. This is a standard procedure for all new financial analysts at Caledonia, and it will serve to determine whether you are moved directly into the...