Homework Answers
NPV of Project A = PV of Cash Flow - Initial Investment =
9500/(1+15%)+16200/(1+15%)^2 - 24000 = -3489.60
NPV of Project B = PV of Cash Flow - Initial Investment =
6500/(1+15%)+9800/(1+15%)^2 - 21000 = -7937.62
Project A should be accepted because because NPV of Project A is
better.
Please Discuss in case of Doubt
Best of Luck. God Bless
Please Rate Well
Add Answer to:
ired return on each projedt You are considering the following two mutually exclusive projects. The requ...
You are considering the following two projects which are mutually exclusive. The required return on each...
You are considering the following two projects which are mutually exclusive. The required return on each project is 14%. Which project should you accept and what is the best reason for that decision? Group of answer choices Both Project A and B since they both have positive NPV Project A, because it has the higher profitability index Project A, because it has the higher net present value Project B, because it has the higher net present value O-NM Project A...
Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown below....
Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown below. The required rate of return on projects of both of their risk class is 12 percent, and that the maximum allowable payback and discounted payback statistic for the projects are 2 and 3 years, respectively. Time: 1 2 3 14,000 34,000 Project A Cash Flow 24,000 5,000 24,000 Project B Cash Flow -34,000 14,000 54,000 Use the NPV decision rule to evaluate these projects;...
You are considering the following two mutually exclusive projects. The required rate of return is 10.75...
You are considering the following two mutually exclusive projects. The required rate of return is 10.75 percent for project A and 12 percent for project B. Which project should you accept and why? Project A -36,000 21,600 18,200 22,100 Project B -69,900 52,600 46,100 Year 1 2 3 0 Project B; because it has the largest total cash inflow Project A; because its NPV is about $796 more than the NPV of Project B Project B; because it returns all...
18. Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown...
18. Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown below. The required rate of return on projects of both of their risk class is 9 percent, and that the maximum allowable payback and discounted payback statistic for the projects are 2 and 3 years, respectively. Time: 0 1 2 3 Project A Cash Flow -21,000 11,000 31,000 2,000 Project B Cash Flow -31,000 11,000 21,000 51,000 Use the NPV decision rule to evaluate...
You are considering the following two mutually exclusive projects. The crossover rate between these two projects...
You are considering the following two mutually exclusive projects. The crossover rate between these two projects is _percent and Project should be accepted if the required return is greater than the crossover rate. Year Project A -$33,000 21,000 13,000 13,000 Project B -$33,000 13,160 11,000 24,500 o 19.62%; В o 9.03%; А o 9.03%; В o 2223%; А 2223%; В
Bumble's Bees, Inc., has identified the following two mutually exclusive projects: Cash Flow (A) ...
PLEASE SHOW WORK AND CALCULATIONS THANKS
Bumble's Bees, Inc., has identified the following two mutually exclusive projects: Cash Flow (A) Cash Flow (B) Year 0 17,000 8,000 7,000 5,000 3,000 17,000 2,000 5,000 4 What is the IRR for each of these projects? If you apply the IRR decision rule, which project should the company accept? Is this decision necessarily correct? If the required return is 11%, what is the NPV for each of these projects? which project will you...
You are considering the following two mutually exclusive projects. Both projects will be depreciated using straight-line...
You are considering the following two mutually exclusive projects. Both projects will be depreciated using straight-line depreciation to a zero book value over the life of the project. Neither project has any salvage value. Year Project A Project B 0 -$87,000 -$85,000 1 31,000 15,000 2 37,000 20,000 3 44,000 90,000 Required rate of return for Project A is 9%, and required rate of return for Project B is 14%. Should you accept or reject these projects based on net...
You are considering the following two mutually exclusive projects. Which project(s) should be recommended? Project A &
You are considering the following two mutually exclusive projects. Which project(s) should be recommended? Project A Project B Year Cash Flow Year Cash Flow 0 -$75,000 0 -$70,000 1 $19,000 1 $10,000 2 $48,000 2 $16,000 3 $12,000 3 $72,000 Required rate of return: 10 percent (for A) 13 percent (for B)
Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown below....
Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown below. The required rate of return on projects of both of their risk class is 12 percent, and that the maximum allowable payback and discounted payback statistic for the projects are 2 and 3 years, respectively. Time: 0 1 2 3 Project A Cash Flow -29,000 19,000 39,000 10,000 Project B Cash Flow -39,000 19,000 29,000 59,000 Use the discounted payback decision rule to evaluate...
The Camel Company is considering two mutually exclusive projects with the following cash flows. At what range of discoun...
The Camel Company is considering two mutually exclusive projects with the following cash flows. At what range of discount rates would you accept project A and at what range of discount rates would you accept project B (will accept answers that are within 1% of correct answer)? Year Project A Project B 0 -$800 -$1000 1 650 650 2 400 650
Suppose your firm is considering two mutually exclusive, required projects with the cash flows shown below. The required rate of return on projects of both of their risk class is 12 percent, and that the maximum allowable payback and discounted payback statistic for the projects are 2 and 3 years, respectively. Time: 1 2 3 14,000 34,000 Project A Cash Flow 24,000 5,000 24,000 Project B Cash Flow -34,000 14,000 54,000 Use the NPV decision rule to evaluate these projects;...
You are considering the following two mutually exclusive projects. The required rate of return is 10.75 percent for project A and 12 percent for project B. Which project should you accept and why? Project A -36,000 21,600 18,200 22,100 Project B -69,900 52,600 46,100 Year 1 2 3 0 Project B; because it has the largest total cash inflow Project A; because its NPV is about $796 more than the NPV of Project B Project B; because it returns all...
You are considering the following two mutually exclusive projects. The crossover rate between these two projects is _percent and Project should be accepted if the required return is greater than the crossover rate. Year Project A -$33,000 21,000 13,000 13,000 Project B -$33,000 13,160 11,000 24,500 o 19.62%; В o 9.03%; А o 9.03%; В o 2223%; А 2223%; В
PLEASE SHOW WORK AND CALCULATIONS THANKS
Bumble's Bees, Inc., has identified the following two mutually exclusive projects: Cash Flow (A) Cash Flow (B) Year 0 17,000 8,000 7,000 5,000 3,000 17,000 2,000 5,000 4 What is the IRR for each of these projects? If you apply the IRR decision rule, which project should the company accept? Is this decision necessarily correct? If the required return is 11%, what is the NPV for each of these projects? which project will you...
Most questions answered within 3 hours.
-
What is meant by a “term premium”?
What can explain such a premium? Is it a...
asked 1 hour ago -
23. Which molecule has only covalent bonds? A. CO2 B. Al2O3 C.
Mg3N2
24. The octet...
asked 1 hour ago -
the
total pressure for a mixture of N2O4 and NO2 is 2.20 atm. If Kp=
7.10...
asked 1 hour ago -
Delaware Corp. prepared a master budget that included $22,385
for direct materials, $28,600 for direct labor,...
asked 1 hour ago -
For pesticide HCB (hexachlorobenzene), its logarithmic partition
coefficient log Kow is 5.6. What would be the...
asked 1 hour ago -
A chemist requires 0.422 mil Na2CO3 for a reaction. How many
grams does this correspond to?
asked 1 hour ago -
If the vapor pressure of carvone is approximately 9.4 torr at 99
°C, approximately how much...
asked 2 hours ago -
A juice bottling company is carrying out a test at 10%
significance that the mean population...
asked 2 hours ago -
What is the reflectivity (in percent) needed to keep water at a
temperature near its freezing...
asked 2 hours ago -
Suppose that the average surface temperature of Earth is 300K.
Assume this is uniform over its...
asked 2 hours ago -
Draw the condensed structural formula for alkenes and alkynes or
the line-angle structural formula for cycloalkenes...
asked 2 hours ago -
M. Laing has suggested a new arrangement of the periodic table
(J.Chem.Ed.1989, 66,
746). Answer the following...
asked 2 hours ago