Homework Answers
Find the NPW of all alternatives using interest rate = 18% and time = 3 years
NPW(A) = -100000 + 70000(P/F, 18%, 2) + 70000(P/F, 18%, 3) = -$7123
NPW(B) = -500000 + 20000(P/F, 18%, 1) + 30000(P/F, 18%, 2) + 30000(P/F, 18%, 3) = $6754
NPW(C) = -80000 + 40000(P/A, 18%, 3) = $6971
Since C has the highest NPW, we select alternative C
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Rank acceptable alternatives, show your
computation of NPV and IRR.
Rank alternatives A-E assuming the hurdle rate has changed
to
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Rank acceptable alternatives, show your
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Rank alternatives A-E assuming the hurdle rate has changed
to
9.25%
Ajax Company has capital alternatives available for 2021 that total investments of $ 1,250,000 The capital budget for 2021 is only $ 750,000 Using the capital budgeting tools from chapter 10 and making appropriate use of Excel, rate each investment and pick the investments that should be undertaken. The hurdle rate is 7.75% B D Investment Investment Alternative Amount...
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