C is correct.
Payback Period is the no. of years it takes to recover the investment.
For B, We can observe that in year 3, the investment of 73 will be recovered.
Payback Period = 2 + (73 - 60) / 30 = 2.4 years.
Consider the following two projects: Discount Rate Project Year 0 Cash Flow -100 -73 Year 1...
Consider the following project cash flows: Year 2 Cash Year 3 Cash Project Year 0 Cash Flow Year 1 Cash Flow Discount Rate Flow Flow A L -113 42 42 / 42 16% The payback period for project A is closest to: O 2.4 years O 2.0 years 2.2 years 0 2.5 years
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%
Consider the following two projects: Discount Rate Year 4 Year 3 Year 2 Year 1 Year 0 Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow - 100 - 73 Project 0.16 N/A 60 50 40 0.16 30 30 30 30 The net present value (NPV) of project B is closest to: O A. 12 O B. 13.7 O. 10.9 O D. 27.4
Consider the following two projects: Project Year 0 Year 1 Year 2 Year 3 Year 4 Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow A - 100 40 50 60 N/A B -73 30 30 30 30 Discount Rate 0.1 0.1 The net present value (NPV) of project A is closest to: A. 28.5 B. 56.9 C. 25 D. 22.8
Consider the following two projects: Year 4 Discount Rate Project A Year 0 Year 1 Year 2 Year 3 Y Cash Cash Cash Cash Cash Flow Flow Flow Flow Flow -100405060 N/A -73 30 30 30 30 The profitability index for project B is closest to: O Select one: A. 12.64 B. 23.34 C.0.12 D. 0.17
Consider the following two projects: Project Year 0 Year 1 Year 2 Year 3 Year 4 Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow A - 100 40 50 60 N/A B -73 30 30 30 30 Discount Rate 0.16 0.16 The net present value (NPV) of project A is closest to: O A. 11.1 B. 25.2 O C. 10.1 OD. 12.6
Сл This Question: 1 pt Consider the following two projects: Project Year 0 Year 1 Year 2 Year 3 Year 4 Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow - 100 40 50 60 ΝΙΑ - 73 30 30 30 30 Discount Rate 0.17 0.17 A B The net present value (NPV) of project A is closest to: O A. 10.2 B. 8.2 O C. 20.4 OD. 9 Click to select your answer. Type here to search o
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: 763,088.5469 Proiect Year 0 Year 1 Year 2 Year 3 Year 4 Cash Flow Cash Flow Cash Flow Cash Flow Cash Flow - 100 40 50 60 N/A - 7330 30 Discount Rate 0.14 0.14 30 The net present value (NPV) of project A is closest to: O A 17.6 O B. 15.5 O C. 14.1 OD 35.1 What is the internal rate of return (IRR) of an investment that requires an initial investment of...
Consider the following two independent investment projects: Cash flows of project A: 0 1 2 3 T + + 100 -130 50 5 Cash flows of project B: 0 2 3 4 5 + + + + 다. -130 90 40 40 40 40 If management only accepts projects that pay back in 3 years or less, according to the discounted payback period rule, which projects will be selected? Use a discount rate of 10%.