Project X | Project Y | Incremental Cash Flow | |
0 | -316400 | -293800 | -22600 |
1 | 147600 | 138050 | 9550 |
2 | 165100 | 155250 | 9850 |
3 | 130200 | 121000 | 9200 |
IRR | 12.85% |
Answer is 12.85%
Matterhorn Mountain Gear is evaluating two projects with the following cash flows: Year Project X Project...
Matterhorn Mountain Gear is evaluating two projects with the following cash flows: Year Project X Project Y 0 −$317,400 −$295,550 1 147,100 137,800 2 164,600 155,000 3 129,700 120,750 What interest rate will make the NPV for the projects equal? A)18.88% B) .41% C)11.80% D)13.27% E)19.30%
Matterhorn Mountain Gear is evaluating two projects with the following cash flows: YearProject XProject Y0−$318,400−$297,3001146,600137,5502164,100154,7503129,200120,500 What interest rate will make the NPV for the projects equal?Multiple Choice13.73%.34%12.21%18.80%18.46%
You are evaluating two projects with the following cash flows: Year Project X Project Y 0 ?$549,600 ?$518,500 1 218,200 207,900 2 228,100 217,700 3 235,300 225,600 4 195,000 186,400 What is the crossover rate for these two projects? 10.03% 22.01% 11.03% 22.69% .68%
Your firm is considering two projects with the following cash flows: Cash flows from project B (£000) (500) 200 250 170 25 30 Year Cash flows from project A (£000) 0(500) 167 180 160 100 100 4 1. Calculate the ARR and payback rule 2. If the appropriate discount rate is 12%, rank the two projects 3. Which project is preferred if you rank by IRR? 4. Calculate the discount rate (r) for which the NPVs of both projects are...
A FBO is evaluating two projects that are mutually exclusive with initial investments and cash flows as follows: Year Cash Flows (A) Cash Flows (B) 0 1 2 3 4 5 -$11,000 3,000 3,000 3,000 3,000 3,000 -$8,000 2,500 2,500 2,500 2,500 2,500 Discount rate = 3.52% What is the NPV of project (A)? 2,539 2,739 3,449 4,000
Blink of an Eye Company is evaluating a 5-year project that will provide cash flows of $37,300, $70,230, $62,770, $60,700, and $43,820, respectively. The project has an initial cost of $168,960 and the required return is 8.7 percent. What is the project's NPV? Multiple Choice $14,983.74 $11,693.94 $19,592.02 $12,863.33 $46,018.20
The following are the cash flows of two projects: Year Nam Project A $ (370) 200 200 200 200 Project B $ (370) 270 270 270 a. Calculate the NPV for both projects if the discount rate is 10%. (Do not round intermediate calculations. Round your answers to 2 decimal places.) NPV Project Project A Project B b. Suppose that you can choose only one of these projects. Which would you choose? Project B Project A Neither
Doak Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 –$ 16,100 1 7,200 2 8,400 3 8,000 4 6,800 5 – 4,200 The company uses an interest rate of 11 percent on all of its projects. Calculate the MIRR of the project using all three methods.
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 Part 1 What is the crossover rate, i.e., the discount rate at which both projects have the same NPV?
The following are the cash flows of two projects: Year Project A Project B 0 −$260 −$260 1 140 160 2 140 160 3 140 160 4 140 a. If the opportunity cost of capital is 11%, calculate NPV for both projects? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Project NPV A $ B b. Which of these projects is worth pursuing if you...