plz solve the 2 questions in problem4Homework Answers
| NPV & IRR Calculation | |||||
| Sr | Details | Year 0 | Year 1 | Year 2 | Year 3 |
| a | Cash Flow | -100 | 430 | -592 | 264 |
| b | PV Fator =1/(1+r)^n when r=1 | 1.000 | 0.500 | 0.250 | 0.125 |
| c | PV of Cash flows =a*b | -100 | 215 | -148 | 33 |
| d | NPV =Sum of PV of Cash flows = | 0 | Ans 1. | ||
| IRR Calculation using IRR Excel formula | |||||
| Putting guess % as 5% we get IRR = | 10% | ||||
| Putting guess % as 15% we get IRR = | 20% | ||||
| So two significant IRRs are 10% & 20% | Ans b. |
Add Answer to:
plz solve the 2 questions in problem4
Problem 4. (6 pts) Cases when Multiple IRRs exist....
Problem 1) Take the difference between the payback period of Projects A and B, i.e.,...
Problem 1) Take the difference between the payback period of
Projects A and B, i.e., calculate: X = Payback Period of Project A
- Payback Period of Project B.
Select one:
a)-3
b)-2
c)-1
d)0
e)1
f)2
g)3
h)Insufficient information
Problem 1) What is (are) the posiive IRR(s) of Project C?
Select one:
a)0%
b)100%
c)104.3% is one of the IRRs and another IRR exists
d)0% is one of the IRRs and another IRR exists
e)7.7% only
f)56.3% is...
Case Study 3--Capital Budgeting (Comprehensive Spreadsheet Problem 11-23, page 408) Your division is considering two projects....
Case Study 3--Capital Budgeting (Comprehensive Spreadsheet Problem 11-23, page 408) Your division is considering two projects. Its WACC is 10%, and the projects' after-tax cash flows (in millions of dollars) would be as follows: Expected Cash Flows Time Project A Project B 0 ($30) ($30) 1 $5 $20 2 $10 $10 3 $15 $8 4 $20 $6 a. Calculate the projects' NPVs, IRRs, MIRRs, regular paybacks, and discounted paybacks. WACC = 10% Use Excel's NPV function as explained in NPVA...
Please help me solve 4-8 Use the following table to answer questions 1 – 6. The...
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...
Homework: Chapter 9 Homework (Copy) 4 of 9 (5 complete) Score: 0 of 2 pts P9-7...
Homework: Chapter 9 Homework (Copy) 4 of 9 (5 complete) Score: 0 of 2 pts P9-7 (similar to) Net present value. Quark Industries has a project with the following projected cash flows: a. Using a discount rate of 9% for this project and the NPV model, determine whether the company should accept or reject this project. b. Should the company accept or reject it using a discount rate of 16%? c. Should the company accept or reject it using a...
4 Which of the following is not a stakeholder of a corporation? a. Manager. b. Employee...
4 Which of the following is not a stakeholder of a corporation? a. Manager. b. Employee c. Government. d. Competitor SA credit loan that charges a monthly interest rate of 1% , which of the following statements is correct? a. The Annual Percentage Rate is 12%, the effective annual rate is 12%. b·The Annual Percentage Rate is 12.68%, the effective annual rate is 12.68%. C. The Annual Percentage Rate is 12%, the effective annual rate is 12.68%. d, The Annual...
MULTIPLE CHOICES Public companies may offer their shares to the public and the shares may bought...
MULTIPLE CHOICES
Public companies may offer their shares to the public and the shares may bought and sold on the Stock Exchange. Private companies are not allowed to offer their shares to the public and the shares can not therefore be bought and sold on the Stock E a. b. c. For al Il corporations, shareholders and management may be one and the same. d. Shareholders will not welcome higher short-term profits if long-tertm profits are damaged a. Manager c....
FCF for Year 0, 1, 2, 3, 4 and 5 NPV? PI? IRR? (Related to Checkpoint...
FCF
for Year 0, 1, 2, 3, 4 and 5
NPV?
PI?
IRR?
(Related to Checkpoint 12.1) (Comprehensive problem-calculating project cash flows, NPV, PI, and IRR) Traid Winds Corporation, a firm in the 31 percent marginal tax bracket with a required rate of return or discount rate of 11 percent, is considering a new project. This project involves the introduction of a new product. The project is expected to last 5 years and then, because this is somewhat of a...
Homework: 6-2 MyStatLab: Module Six Problem Set Score: 0 of 5 pts 5 of 14 (4...
Homework: 6-2 MyStatLab: Module Six Problem Set Score: 0 of 5 pts 5 of 14 (4 complete) 4.1.40-T Lyme disease is an inflammatory disease that results in a skin rash and flulike symptoms. It is transmitted through the bite of an infected deer tick. The following data represent the number of reported cases of Lyme disease and the number of drowning deaths for a rural county. Complete Click the icon to view the table of Lyme disease and drowning deaths....
***Please answer ALL questions to receive great ratings*** Question 1 Question 2 Question 3 Question Help...
***Please answer ALL questions to receive great
ratings***
Question 1
Question 2
Question 3
Question Help * P 8-28 (similar to) You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): Year 0 -$48 -$99 Year 1 $25 S20 Year 2 $20 $42 Year 3 $18 $49 Year 4 $15 $62 Project a. What are the IRRs of the two projects? b. If your discount rate is 5.3%, what are...
please answer questions 2-7. 2) You run a construction firm. You have just won a contract...
please answer questions 2-7.
2) You run a construction firm. You have just won a contract to build a government office building. Building it will require an investment of $10 million today and $5 million in one year. The government will pay you $20 million in one year upon the building's completion. Assume the investors' expected rate of return is 10%. a. What is the NPV of this opportunity? b. How can your firm turn this NPV into cash today?...
Problem 1) Take the difference between the payback period of
Projects A and B, i.e., calculate: X = Payback Period of Project A
- Payback Period of Project B.
Select one:
a)-3
b)-2
c)-1
d)0
e)1
f)2
g)3
h)Insufficient information
Problem 1) What is (are) the posiive IRR(s) of Project C?
Select one:
a)0%
b)100%
c)104.3% is one of the IRRs and another IRR exists
d)0% is one of the IRRs and another IRR exists
e)7.7% only
f)56.3% is...
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...
Homework: Chapter 9 Homework (Copy) 4 of 9 (5 complete) Score: 0 of 2 pts P9-7 (similar to) Net present value. Quark Industries has a project with the following projected cash flows: a. Using a discount rate of 9% for this project and the NPV model, determine whether the company should accept or reject this project. b. Should the company accept or reject it using a discount rate of 16%? c. Should the company accept or reject it using a...
4 Which of the following is not a stakeholder of a corporation? a. Manager. b. Employee c. Government. d. Competitor SA credit loan that charges a monthly interest rate of 1% , which of the following statements is correct? a. The Annual Percentage Rate is 12%, the effective annual rate is 12%. b·The Annual Percentage Rate is 12.68%, the effective annual rate is 12.68%. C. The Annual Percentage Rate is 12%, the effective annual rate is 12.68%. d, The Annual...
MULTIPLE CHOICES
Public companies may offer their shares to the public and the shares may bought and sold on the Stock Exchange. Private companies are not allowed to offer their shares to the public and the shares can not therefore be bought and sold on the Stock E a. b. c. For al Il corporations, shareholders and management may be one and the same. d. Shareholders will not welcome higher short-term profits if long-tertm profits are damaged a. Manager c....
FCF
for Year 0, 1, 2, 3, 4 and 5
NPV?
PI?
IRR?
(Related to Checkpoint 12.1) (Comprehensive problem-calculating project cash flows, NPV, PI, and IRR) Traid Winds Corporation, a firm in the 31 percent marginal tax bracket with a required rate of return or discount rate of 11 percent, is considering a new project. This project involves the introduction of a new product. The project is expected to last 5 years and then, because this is somewhat of a...
Homework: 6-2 MyStatLab: Module Six Problem Set Score: 0 of 5 pts 5 of 14 (4 complete) 4.1.40-T Lyme disease is an inflammatory disease that results in a skin rash and flulike symptoms. It is transmitted through the bite of an infected deer tick. The following data represent the number of reported cases of Lyme disease and the number of drowning deaths for a rural county. Complete Click the icon to view the table of Lyme disease and drowning deaths....
***Please answer ALL questions to receive great
ratings***
Question 1
Question 2
Question 3
Question Help * P 8-28 (similar to) You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): Year 0 -$48 -$99 Year 1 $25 S20 Year 2 $20 $42 Year 3 $18 $49 Year 4 $15 $62 Project a. What are the IRRs of the two projects? b. If your discount rate is 5.3%, what are...
please answer questions 2-7.
2) You run a construction firm. You have just won a contract to build a government office building. Building it will require an investment of $10 million today and $5 million in one year. The government will pay you $20 million in one year upon the building's completion. Assume the investors' expected rate of return is 10%. a. What is the NPV of this opportunity? b. How can your firm turn this NPV into cash today?...
Most questions answered within 3 hours.
-
Need to do in Python? Can do in Javascript but not in Python
Write a function...
asked 10 minutes ago -
Industry: Telecommunications in India
Here, you need to discuss the sources of the growth pattern
and...
asked 1 hour ago -
Hydrobromic acid
dissolves solid iron according to the followiaung reaction:
Fe(s)+2HBr(aq)→
FeBr2(aq)+ H2(g)
Part A. What...
asked 3 hours ago -
Verify the following vector identity in SPHERICAL
COORDINATES.
div(curl(A)) = 0
asked 4 hours ago -
The work function (Φ) for a metal is 7.50×10-19 J.
What is the longest wavelength (nm)...
asked 5 hours ago -
1. Would the following procedural changes cause the
calculated mass percent Ni2+ ion in Ni(NH3)nCl2 to...
asked 7 hours ago -
1. Why does the voltage of the capacitor vary with frequency?
where does this missing voltage...
asked 8 hours ago -
p p please write each step out clearly
3. A manager of a company is considering...
asked 7 hours ago -
On October 1, Ebony Ernst organized Ernst Consulting; on October
3, the owner contributed $83,540 in...
asked 8 hours ago -
A.)As an electron moves through a region of space, its speed
decreases from 9.60 × 106...
asked 8 hours ago -
In java with the netbeans program do:
Through object programming
Create a class "ContadorP", which is...
asked 8 hours ago -
Pattern Corporation acquired all of Science
Company's outstanding stock on January 1, 2016 for $600,000 cash....
asked 8 hours ago