C = 17.40% and D = 20.56%
Based on the graph above, points C and D represent discount rate (or WACC) for the two projects where there NPV is zero.
So, we need to compute IRR for both projects.
please answer Question 4 20 pts Use the information in the table and the graph to...
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Which project will you choose? Use the information to answer the following questions. A company is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below: Year o Year 1 Year 2 Year 3 Year 4 Cashflow for S -100 40 50 30 30 Cashflow for L -100 10 10 50 90 Assume the company can get an unlimited amount of capital at that cost. WACC NPV (S) NPV (L) 5%...
Please help me solve 4-8
Use the following table to answer questions 1 – 6. The wacc is 10% for all projects in this table. Year Project A -1,000 1,000 Project B -1,000 300 400 500 600 Project C -1,000 550 450 350 250 Project D -1,000 600 800 1. Compute the Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index (PI), and Payback Period (PB) for each project: Project A Project B Project C Project D WACC...
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Question 1 20 pts LO3 WACC = Period 4% Project 1 Project 2 -$150 - $60 $90 $50 $35 $75 $60 Based on the information in the table, what is the equivalent annuity for Project 1? O $21.34 O $59.22 $25.61 O $50.34 O $19.74
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Question 5 20 pts WACC = 8% Period Project Project 1 -$200 -$75 $100 $100 $75 $25 $80 O Based on the information in the table, what is the replacement chain NPV for Project 1? $36.59 $20.40 o $40.80 $43.91
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20 pts Question 2 LO3 WACC = 5% Period Project 1 Project 2 -$75 -$150 0 $90 1 $35 $75 $70 2 $60 3 4 5 Based on the information in the table, what is the equivalent annuity for Project 2? $11.74 O $21.83 O$14.09 O $18.55 $10.91
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Use the following table to answer questions 1 – 6. The wacc is 10% for all projects in this table. Text Effects Year Project A -1,000 1,000 Project C -1,000 Project B -1,000 300 400 500 600 Project D -1,000 600 800 550 450 350 250 5. Projects B and D are mutually exclusive and can be replicated: a. Complete the table below: Project B Project D WACC 10.0% 10.0% Equivalent Annual Annuity Replacement...
Question 2 10 pts Use the following graph to answer the next question. MC ATC AVC Costs and Revenues 1.25 1.05 .90 .80 .65 .60 0 20 15 35 Quantity The graph shows the cost curves for a perfectly competitive firm. If the market price of the product is $1.25 per unit, then the firm will earn how much profit per unit in the short run? $.60 $1.25 $.65 o $.45
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Question 1 2 points Save Answer Projects C and D both have normal cash flows and are mutually exclusive. Project C has a higher NPV exceeds 12%. Which of the following statements is CORRECT? O Project D is probably larger in scale than Project C. OProject C probably has a faster payback the WACC is less than 12%, whereas Project D has a higher NPV if the WACC Project C probably has a higher iRR The crossover rate...
1. Use the information in the table below to answer questions a-C. Project 4 5 NPV IRR 1496 Investment 1 $1,000,000 300,000 300,000 | 400,000 $1,450,000 500,000 500,000 500,000 $2,500,000 750,000 o 0 400,000 500,000 1,000,000 0 0 58.7 14.2% 3,000,000 507.9 a. If these projects listed above are independent, which ones would be accepted if you use a 3 year payback period? b. If the projects listed above are mutually exclusive, which one would be chosen using the NPV...
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Question 3 20 pts LO3 Year ($60) $18 $32 $8 $2 $9 $3 5.00% WACC = Given the information in the table, what is project A's MIRR? 06.14% O 5.00% O 5.57% O 7.95%