8. Project A has a required return on 9.2 percent and cash flows of −$87,000, $32,600, $35,900, and $43,400 for Years 0 to 3, respectively. Project B has a required return of 12.7 percent and cash flows of −$85,000, $14,700, $21,200, and $89,800 for Years 0 to 3, respectively. Which project(s) should you accept based on net present value if the projects are mutually exclusive?
Project B. Please show all worked typed as I am on mobile thank you!
NPV of project A = Sum of CF/(1+r)^n
= -87000+ 32600/1.092+ 35900//1.092^2 + 43400/1.092^3
=6288.18
NPV of Project B = Sum of CF/(1+r)^n
= -85000+ 14700/1.127^1 + 21200/1.127^2 + 89800/1.127^3
=7468.93
Accept Project B since it has higher NPV.
8. Project A has a required return on 9.2 percent and cash flows of −$87,000, $32,600,...
Project A has a required return on 9.2 percent and cash flows of −$87,000, $32,600, $35,900, and $43,400 for Years 0 to 3, respectively. Project B has a required return of 12.7 percent and cash flows of −$85,000, $14,700, $21,200, and $89,800 for Years 0 to 3, respectively. Which project(s) should you accept based on net present value if the projects are mutually exclusive? Multiple Choice Accept both projects Accept either one, but not both Accept Project A and reject...
8. Project A has a required return on 9.2 percent and cash flows of −$87,000, $32,600, $35,900, and $43,400 for Years 0 to 3, respectively. Project B has a required return of 12.7 percent and cash flows of −$85,000, $14,700, $21,200, and $89,800 for Years 0 to 3, respectively. Which project(s) should you accept based on net present value if the projects are mutually exclusive? Project B. Please type out all work as I am on mobile please no excel...
Project A has a required return on 9.2 percent and cash flows of −$87,000, $32,600, $35,900, and $43,400 for Years 0 to 3, respectively. Project B has a required return of 12.7 percent and cash flows of −$85,000, $14,700, $21,200, and $89,800 for Years 0 to 3, respectively. Which project(s) should you accept based on net present value if the projects are mutually exclusive? Project B. Please Show All Work
Project A has a required return on 9.2 percent and cash flows of −$87,000, $32,600, $35,900, and $43,400 for Years 0 to 3, respectively. Project B has a required return of 12.7 percent and cash flows of −$85,000, $14,700, $21,200, and $89,800 for Years 0 to 3, respectively. Which project(s) should you accept based on net present value if the projects are mutually exclusive? Please show the calculations necessary to find NPV for each project.
Project A has cash flows of −$92,000, $49,400, $27,200, $24,500, and $30,690 for Years 0 to 4, respectively. Project B has an initial cost of $50,000 and an annual cash inflow of $20,500 for four years. The required rate of return is 18 percent. These are mutually exclusive projects. Which project(s) should be accepted or rejected?
Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown below. The required rate of return on projects of both of their risk class is 11 percent, and that the maximum allowable payback and discounted payback statistic for the projects are 2 and 3 years, respectively. 0 Time: 43,000 Project A 33,000 23,000 Flow Project B 43,000 23,000 33,000 63,000 Cash Flow Use the discounted payback decision rule to evaluate these projects; which one(s) should...
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Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown below. The required rate of return on projects of both of their risk class is 10 percent, and that the maximum allowable payback and discounted payback statistic for the projects are 2 and 3 years, respectively. Time: 0 1 2 3 Project A Cash Flow -37,000 27,000 47,000 18,000 Project B Cash Flow -47,000 27,000 37,000 67,000 Use the NPV decision rule to evaluate these...