I need the solution step by step for this question please, Consider the following two projects...
I need the solution step by step for this question please,
Consider the following two projects and choose the correct answer:
Year 0 Year1 Year2 Year3 Year4 Year5 Year6 Year7 Discount Rate
project C/F C/F C/F C/F C/F C/F C/F C/F
Alpha - 79 20 25 30 35 40 N/A N/A 15%
Beta - 80 25 25 25 25 25 25 25 16%
The internal rate of return (IRR) for project Alpha is closest to:
() 24.5%
() 22.7%
() 25.0%
() 22.2%
Homework Answers
Let irr be x%
At irr,present value of inflows=present value of outflows.
79=20/1.0x+25/1.0x^2+30/1.0x^3+35/1.0x^4+40/1.0x^5
Hence x=irr=22.7%(Approx).
Add Answer to:
I need the solution step by step for this question please,
Consider the following two projects...
Consider the following two projects: Project Year 0 Year 1 Year 2 Year 3 Year 4...
Consider the following two projects: Project Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Discount C/F C/F C/F C/F C/F C/F C/F C/F Rate Alpha - 79 20 25 30 35 40 NA NA 15% Beta - 80 25 25 25 25 25 25 25 16% Assume that projects Alpha and Beta are mutually exclusive. The correct investment decision and the best rationale for that decision is to O A invest in...
Consider the following two projects: Year 0 Year 1 Year 2 Year 3 Year 4 Year...
Consider the following two projects: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Project C/F C/F C/F C/F C/F C/F C/F C/F Alpha - 79 20 25 30 35 40 NA N/A Beta -80 25 25 25 25 25 25 25 Discount Rate 14% 15% The net present value (NPV) for project beta is closest to:
This Question: 1 pt Consider the following two projects: Year 0 Year 1 Year 2 Year...
This Question: 1 pt Consider the following two projects: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Discount Project C/F C/F CIF CIF C/F CIF CIF CIF Rate Alpha - 79 20 25 35 40 NA NA 12% Beta 80 25 25 25 25 25 25 13% 30 25 The net present value (NPV) for project beta is closest to: O A. $31 O B. $37 O C. $24 D. $21
Consider the following two projects: Year 0 Yearl Year 2 Year 3 Year 4 Year 5...
Consider the following two projects: Year 0 Yearl Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Discount Project C/E C/F C/E C/E C/F C/E C/F C/F Rate Alpha -79 20 25 30 35 40 N/A N/A 15% Beta -80 25 25 25 25 25 25 25 16% Which of the following statements is correct? Select one: A. You should invest in project Alpha since IRRAlpha > IRRBeta. B. You should invest in project Beta since NPVBeta...
Consider the following two projects: Year 0 Year 1 Year 2 Year 3 Year 4 Year...
Consider the following two projects: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Discount Project C/F C/F C/F C/F C/F C/F Rate Alpha -30 20 25 30 35 4 0 15% Bet =80255 255 25 16 a) Which project would you choose based on the NPV rule? b) Draw a graph showing the IRR, if IRR for project Alpha is 20% and IRR for project Beta is 22%. ਜਾ ਰ ਰ ਰ .
Explain each letter in the questions above. b) If the terminal growth rate is projected to...
Explain each letter in the questions
above.
b) If the terminal growth rate is projected to be 6%, rather than 5%, re-estimate the value of a share of Global Services. Does this new estimate make sense? c) If the expected market return is assumed to be 9%, rather than 10%, re-estimate the value of a share of Global Services. Does this new estimate make sense? d) If the systematic risk coefficient (beta) of the stock increases from 1.25 to 1.40,...
Use the table for the question(s) below. Consider the following two projects: Year 4 Project Year...
Use the table for the question(s) below. Consider the following two projects: Year 4 Project Year 0 Cash Flow -100 -73 Year 1 Cash Flow 40 30 Year 2 Cash Flow 50 30 Year 3 Cash Flow 60 30 Cash Flow N/A 30 Discount Rate 15 15 A The internal rate of return (IRR) for project A is closest to: Select one: A. 21.6% B. 23.3% C. 42.9%
PA7. LO 11.4 There are two projects under consideration by the Rainbow factory. Each of the...
PA7. LO 11.4 There are two projects under consideration by the Rainbow factory. Each of the projects will require an initial investment of $35,000 and is expected to generate the following cash flows: Year 1 Year 2 Year 3 Total Alpha Project $32,000 $22,500 $5,000 $59,500 Beta Project 7,500 23,500 28,000 59,000 Use the information from Problem PA6 to calculate the internal rate of return on both projects and make a recommendation on which one to accept. For further instructions...
All I need help with on this question is the MIRR for all three projects. I...
All I need help with on this question is the MIRR for all three
projects. I have tried both excel and handwriting and can't seem to
get it right, so this is my last attempt. Thank you!
Since the picture seems hard to see: The values for Project M
are 400,000 years 1-5, N is 600,000 years 1-5, and O is 900,000
(Y1), 700,000 (Y2), 500,000 (Y3), 300,000 (Y4), and 100,000 (Y5).
The discount rate for M is 8%, N...
14. Consider four projects with the following sequences of cash flows: n 0 NET CASH FLOWS...
14. Consider four projects with the following sequences of cash flows: n 0 NET CASH FLOWS A B C -$25,000|-$23,000-$56,500 $12,000 $32,000 -$2,500 $23,000 $32,000-$6,459 $34,000 $25,000 $88,345 3 (a) Identify all the simple investments. (b) Identify all the non-simple investments. (c) Compute the Internal Rate of Return (IRR) for each project using NPV method and Excel. Note the following: A simple (or conventional) investment is simply when one sign change occurs in the net cash flow series. If the...
Consider the following two projects: Project Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Discount C/F C/F C/F C/F C/F C/F C/F C/F Rate Alpha - 79 20 25 30 35 40 NA NA 15% Beta - 80 25 25 25 25 25 25 25 16% Assume that projects Alpha and Beta are mutually exclusive. The correct investment decision and the best rationale for that decision is to O A invest in...
Consider the following two projects: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Project C/F C/F C/F C/F C/F C/F C/F C/F Alpha - 79 20 25 30 35 40 NA N/A Beta -80 25 25 25 25 25 25 25 Discount Rate 14% 15% The net present value (NPV) for project beta is closest to:
This Question: 1 pt Consider the following two projects: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Discount Project C/F C/F CIF CIF C/F CIF CIF CIF Rate Alpha - 79 20 25 35 40 NA NA 12% Beta 80 25 25 25 25 25 25 13% 30 25 The net present value (NPV) for project beta is closest to: O A. $31 O B. $37 O C. $24 D. $21
Consider the following two projects: Year 0 Yearl Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Discount Project C/E C/F C/E C/E C/F C/E C/F C/F Rate Alpha -79 20 25 30 35 40 N/A N/A 15% Beta -80 25 25 25 25 25 25 25 16% Which of the following statements is correct? Select one: A. You should invest in project Alpha since IRRAlpha > IRRBeta. B. You should invest in project Beta since NPVBeta...
Consider the following two projects: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Discount Project C/F C/F C/F C/F C/F C/F Rate Alpha -30 20 25 30 35 4 0 15% Bet =80255 255 25 16 a) Which project would you choose based on the NPV rule? b) Draw a graph showing the IRR, if IRR for project Alpha is 20% and IRR for project Beta is 22%. ਜਾ ਰ ਰ ਰ .
Explain each letter in the questions
above.
b) If the terminal growth rate is projected to be 6%, rather than 5%, re-estimate the value of a share of Global Services. Does this new estimate make sense? c) If the expected market return is assumed to be 9%, rather than 10%, re-estimate the value of a share of Global Services. Does this new estimate make sense? d) If the systematic risk coefficient (beta) of the stock increases from 1.25 to 1.40,...
Use the table for the question(s) below. Consider the following two projects: Year 4 Project Year 0 Cash Flow -100 -73 Year 1 Cash Flow 40 30 Year 2 Cash Flow 50 30 Year 3 Cash Flow 60 30 Cash Flow N/A 30 Discount Rate 15 15 A The internal rate of return (IRR) for project A is closest to: Select one: A. 21.6% B. 23.3% C. 42.9%
PA7. LO 11.4 There are two projects under consideration by the Rainbow factory. Each of the projects will require an initial investment of $35,000 and is expected to generate the following cash flows: Year 1 Year 2 Year 3 Total Alpha Project $32,000 $22,500 $5,000 $59,500 Beta Project 7,500 23,500 28,000 59,000 Use the information from Problem PA6 to calculate the internal rate of return on both projects and make a recommendation on which one to accept. For further instructions...
All I need help with on this question is the MIRR for all three
projects. I have tried both excel and handwriting and can't seem to
get it right, so this is my last attempt. Thank you!
Since the picture seems hard to see: The values for Project M
are 400,000 years 1-5, N is 600,000 years 1-5, and O is 900,000
(Y1), 700,000 (Y2), 500,000 (Y3), 300,000 (Y4), and 100,000 (Y5).
The discount rate for M is 8%, N...
14. Consider four projects with the following sequences of cash flows: n 0 NET CASH FLOWS A B C -$25,000|-$23,000-$56,500 $12,000 $32,000 -$2,500 $23,000 $32,000-$6,459 $34,000 $25,000 $88,345 3 (a) Identify all the simple investments. (b) Identify all the non-simple investments. (c) Compute the Internal Rate of Return (IRR) for each project using NPV method and Excel. Note the following: A simple (or conventional) investment is simply when one sign change occurs in the net cash flow series. If the...
Most questions answered within 3 hours.
-
A new battery's voltage may be acceptable (A) or unacceptable
(U). A certain flashlight requires two...
asked 33 seconds ago -
Water has significant IMF, which result in many of its unique
properties—high boiling point relative to...
asked 19 minutes ago -
I need help with an executive summary for Adidas Items to be
included are a discription...
asked 12 minutes ago -
19. Most progressive reform activists were white
and a. upper class. b. lower class. c. wokring...
asked 14 minutes ago -
If X is a binomial random variable with n = 8
and p = 0.2, the...
asked 25 minutes ago -
Seasonal or cyclical variation in a time-series model…
---exhibits irregular
variation that can be accounted for...
asked 26 minutes ago -
Please use Barney's VRIO framework of analysis to evaluate a
firm's competencies. Please choose a specific...
asked 39 minutes ago -
Where would you expect to have diabetes contributing to the most
DALYs in 2035, according to...
asked 40 minutes ago -
1.) Major league baseball salaries averaged $1.5 million with a
standard deviation of $1 million in...
asked 49 minutes ago -
A hedge fund is holding a three-year,
$10 million face value 6 percent annual coupon bond...
asked 1 hour ago -
The focal length of a makeup (concave) mirror is 0.48 m. What
magnification does this mirror...
asked 1 hour ago -
TRUE/FALSE
Long-lived assets that are tangible in nature, used in the
operations of the business, and...
asked 1 hour ago