SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE
I HAVE WRITTEN IN EXCEL. BUT DID NOT USE A SINGLE EXCEL FUNCTION. MY HANDWRITING IS NOT THAT GOOD. I HAVE EVEN CALCULATED PV FACTOR USING CALCULATOR.
I HAVE USED CALCULATOR IN ALL CALCULATIONS AND ALSO EXPLAINED HOW TO GET THE VALUES. WILL CLEAR ALL DOUBTS WITHOUT FAIL. THANK YOU
do not use excel. by hand. 2. You are evaluating two mutually exclusive projects. The cash...
(Mutually exclusive projects and NPV) You have been assigned the task of evaluating two mutually exclusive projects with the following projected cash flows: Year Project A Project B Cash Flow Cash Flow $(102,000) $(102,000) 40,000 40.000 40.000 40,000 0 40,000 215,000 If the appropriate discount rate on these projects is 9 percent, which would be chosen and why? The NPV of Project Ass (Round to the nearest cont.)
Suppose you are faced with choosing between two mutually exclusive projects. Your boss asked you to use the Replacement Chain method. The first project offers cash flows of $15,000 in years one and two, and $20,000 in years three, four, and five. It has an initial cost of $25,000. The second project offers cash flows of $25,000 per year for four years, and then $45,000 per year for six additional years (total project life of 10 years). It has an...
Mr. S. Berlusconi, the finance manager of Zeffira Company ((ZC), is evaluating two mutually exclusive investment projects, project L and project K. The expected life of project L is six years and that of project K is three years. ZC is planning to replicate investment project K for another three years. The expected cash inflows and outflows of the projects are provided in the following table: Project K Project L Year Cash Flow Year Cash Flow 0 ($25,000) 0 ($30,000)...
Yong Importers, an Asian import company, is evaluating two mutually exclusive projects, A and B. The relevant cash flows for each project are given in the table below. The cost of capital for use in evaluating each of these equally risky projects is 10 percent. initial investment project a project b $350,000 $425,000 year cash inflows (cf) 1 140,000 175,000 2 165,000 150,000 3 190,000 125,000 4 100,000 5 75,000 6 50,000 Which project should be chosen on the basis of...
A FBO is evaluating two projects that are mutually exclusive with initial investments and cash flows as follows: Year Cash Flows (A) Cash Flows (B) 0 1 2 3 4 5 -$11,000 3,000 3,000 3,000 3,000 3,000 -$8,000 2,500 2,500 2,500 2,500 2,500 Discount rate = 3.52% What is the NPV of project (A)? 2,539 2,739 3,449 4,000
You are evaluating two mutually exclusive projects. Project 1 has an NPV of $3000 and an IRR of 15%. Project 2 has expected cash flows of - $22,477 in year 0, $14,236 in year 1, $11,904 in year 2 and $10,013 in year 3. If there is a required rate of 10% on both projects, what is the Net Present Value of Project 2? (Think about but do not answer on line; which project would you choose?
An airline is evaluating two projects that are mutually exclusive with initial investments and cash flows as follows: Year Cash Flows (A) Cash Flows (B) 0 1 2 3 4 5 -$18,500 4,500 4,500 4,500 4,500 4,000 -$16,490 4,000 4,000 4,000 4,000 4,000 According to the above table, what is the IRR of project (A)? A) 3% B) 6% C) 9% D) None of the above.
As the director of capital budgeting for Denver Corporation, you are evaluating two mutually exclusive projects with the following net cash flows. Project X has cash flows of -100,000 in year 0, 50,000 in year 1, 40,000 in year 2, 30,000 in year 3 and 10,000 in year 4. Project Z has cash flows of -100,000 in year 0, 10,000 in year 1, 30,000 in year 2, 40,000 in year 3 and 60,000 in year 4. If Denver's cost of...
15. The replacement chain approach - Evaluating projects with unequal lives Evaluating projects with unequal lives RTE Telecomm is a U.S. firm that wants to expand its business internationally. It is considering potential projects in both Italy and Ukraine, and the Italian project is expected to take six years, whereas the Ukrainian project is expected to take only three years. However, the firm plans to repeat the Ukrainian project after three years. These projects are mutually exclusive, so RTE Telecomm's...
consider two mutually exclusive projects with the following cash flows: Project A B C/ F C $(41,215) $(46,775) /F $12,500 $15,000 C/F2 $14,000 $15,000 C/F3 $16,500 $15,000 C/ F $18,000 $15,000 C /F5 $20,000 $15,000 C/F6 N/A $15,000 25) You are considering using the incremental IRR approach to decide between the two mutually exclusive projects A & B. How many potential incremental IRRs could there be? A) 2 B) 1 D) 0