Question

Consider the following cash flows and present-worth profile. Year 0 1 2 3 Net Cash Flows ($) Project 1 Project 2 - $930 - $930 500 300 700 Y Х 1,000 Click the icon to view the NPW plot. More Info - X (a) Determine the values of X and Y. The value of X is $ (Round to the nearest dollar.) The value of Y is $ (Round to the nearest dollar.) (b) Calculate the terminal project balance of project 1 at MARR = 25%. The terminal project balance of project 1 at MARR = 25% is (Round to the nearest dollar.) a (c) Find the values of a, b, and c in the NPW plot. The value of a is $ (Round to the nearest dollar.) PW(1) 25% = ? The value of b is $(Round to the nearest dollar.) The value of cis [%. (Round to one decimal place.) on 01- 35 45 55 Project 1 24% Project 2 i(%)

Answer 1

Year 0 Project I 2 Project - 1930 500 700 х 2 .930 300 Y 1000 3 with graph IRRI IRR₂ 25% 24/ a) (Net quent value of project - 930 o) =) IRR, = 25% (1.25) + + 700 500 1.25 + X - 0 2 (1.25) X 159 (Net velul 9 project 2 : 0) / IRR = 24%. present - 930 + + Y + 1000 300 1.24 (1.247² (7.24) 3 y 253 MARR b) Terminal project balance of project I at 125% 930 (1.25) + 500(1-25)+ 700(1.25) + 159 o Terminal balance

i) The ід The The halu nalu value a о 0. 625 429 21:1/. с As и и intorust erak * О yuk gшиш иш е кој 2 а t 206 + 295 + 1боо – 456 625 Я Net querent b — аш р. дија 450 tsoo +1'00 + 154 429 year lah »» Чичици во о -200 - 441 2 2 *ч | Lu IRR be NPV го 4 Э this quoject – Ч41 84) (1+1)*(1+x) * + + о - 200 + : б. 211 21:1/.