Homework Answers
Add Answer to:
Your company have three mutually exclusive projects which are explained in the table below. You a...
Use Excel. AEW-UEL Your company have three mutually exclusive projects which are explained in the table...
Use Excel.
AEW-UEL Your company have three mutually exclusive projects which are explained in the table below. You are an engineer and your supervisor asks for your opinion. What is your recommendation and why? What project(s) would you recommend? Initial Investment Annual savings salvage value project life MARR Project A $ 15,000 $ 2,050 $ 3,000 Project B $ 10,000 $ 1,900 $ 2,300 5 6% Project C $ 11,000 $ 1,000 $ 5,000 15 6%| 6%
Your boss hands you the following information for a pair of mutually exclusive projects and asks...
Your boss hands you the following information for a pair of mutually exclusive projects and asks for your recommendation. What should you do? Project Cost of Capital 13% 13% IRR 18% 28% Year 0 - $10,000 - $10,000 Cash Flows Year 1 Year 2 $7000 $4000 $2500 $7000 Year 3 $2000 $8000 The NPV of project A is $ , and the NPV of project B is $ (Round to two decimal places as needed.) . Using the NPV rule,...
You are evaluating the following mutually exclusive projects for your firm, whose cost of capital is...
You are evaluating the following mutually exclusive projects for your firm, whose cost of capital is 14%, and all dollar amounts are in millions. 1. Verify the NPV and IRR of each project. 2. What is your recommendation? Show how to calculate NPV and IRR Project Required Return Life IO NCF1-n NPV IRR Alpha 12% 10 years $50 $20 Beta 8% 5 $50 $25
You are evaluating the following mutually exclusive projects for your firm, whose cost of capital is...
You are evaluating the following mutually exclusive projects for your firm, whose cost of capital is 14%, and all dollar amounts are in millions. 1. Verify the NPV and IRR of each project. 2. What is your recommendation? Project Required Return Life IO NCF1-n NPV IRR Alpha 12% 10 years $50 $20 $63 38.45% Beta 8% 5 $50 $25 $49.82 41.04% EAABeta = $12.48 million > EAAAlpha = $11.15 million so Accept B and Reject A Is the answer- Please...
(Mutually exclusive projects and NPV) You have been assigned the task of evaluating two mutually exclusive...
(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.)
You can only invest in one of the projects The three projects below are mutually exclusive...
You can only invest in one of the projects
The three projects below are mutually exclusive and completely essential for your firm's existence. Your firm MUST invest in one (and only one) of them. You have been charged with analyzing the projects and making a recommendation for which to pursue. You should complete the indicated computations for each project then write a short analysis and conclusion in the text box below. Make sure to clearly indicate which project you think...
MIRR and NPV Your company is considering two mutually exclusive projects, X and Y, whose costs...
MIRR and NPV Your company is considering two mutually exclusive projects, X and Y, whose costs and cash flows are shown below: Year X Y 0 -$5,000 -$5,000 1 1,000 4,500 2 1,500 1,500 3 2,000 1,000 4 4,000 500 The projects are equally risky, and their cost of capital is 13%. You must make a recommendation, and you must base it on the modified IRR (MIRR). Calculate the two projects' MIRRs. Do not round intermediate calculations. Round your answers...
MIRR and NPV Your company is considering two mutually exclusive projects, X and Y, whose costs...
MIRR and NPV Your company is considering two mutually exclusive projects, X and Y, whose costs and cash flows are shown below: Year X Y 0 -$5,000 -$5,000 1 1,000 4,500 2 1,500 1,500 3 2,000 1,000 4 4,000 500 The projects are equally risky, and their cost of capital is 14%. You must make a recommendation, and you must base it on the modified IRR (MIRR). Calculate the two projects' MIRRs. Do not round intermediate calculations. Round your answers...
Pound Industries is attempting to select the best of three mutually exclusive projects. The initial investment...
Pound Industries is attempting to select the best of three mutually exclusive projects. The initial investment and after-tax cash inflows associated with these projects are shown in the following table. Cash flows Project A Project B Project C Initial investment (CF) $60000 $100000 $110000 Cash inflows (CF), t equals1 to 5: $20000 $31500 $32500 a. Calculate the payback period for each project. b. Calculate the net present value (NPV) of each project, assuming that the firm has a cost of...
You are analyzing two mutually exclusive projects. NPV IRR Project A $10,000 18% Project...
You are analyzing two mutually exclusive projects. NPV IRR Project A $10,000 18% Project B $18,100 13% Which project do you recommend? Defend your answer as to why you recommended the particular project and specifically list what assumptions you used to justify the particular decision. In addition, what other factors should you consider when evaluating the above projects?
Use Excel.
AEW-UEL Your company have three mutually exclusive projects which are explained in the table below. You are an engineer and your supervisor asks for your opinion. What is your recommendation and why? What project(s) would you recommend? Initial Investment Annual savings salvage value project life MARR Project A $ 15,000 $ 2,050 $ 3,000 Project B $ 10,000 $ 1,900 $ 2,300 5 6% Project C $ 11,000 $ 1,000 $ 5,000 15 6%| 6%
Your boss hands you the following information for a pair of mutually exclusive projects and asks for your recommendation. What should you do? Project Cost of Capital 13% 13% IRR 18% 28% Year 0 - $10,000 - $10,000 Cash Flows Year 1 Year 2 $7000 $4000 $2500 $7000 Year 3 $2000 $8000 The NPV of project A is $ , and the NPV of project B is $ (Round to two decimal places as needed.) . Using the NPV rule,...
(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.)
You can only invest in one of the projects
The three projects below are mutually exclusive and completely essential for your firm's existence. Your firm MUST invest in one (and only one) of them. You have been charged with analyzing the projects and making a recommendation for which to pursue. You should complete the indicated computations for each project then write a short analysis and conclusion in the text box below. Make sure to clearly indicate which project you think...
Most questions answered within 3 hours.
-
Which of these four researchers is most likely to have made Type
1 error
Kim who...
asked 3 seconds ago -
Create ER Model
Assets are resources that are used in CMS to display content.
Each asset...
asked 35 seconds from now -
In a performance test, each of two cars takes 8.9 s to
accelerate from rest to...
asked 52 seconds ago -
Sapphire Aerospace operates 52 weeks per year, and its cost of
goods sold last year was...
asked 4 minutes ago -
A. Suppose your manager indicates that for a normally
distributed data set you are analyzing, your...
asked 4 minutes ago -
For each the following molecules draw the best possible
structure based on formal charges for each...
asked 5 minutes ago -
A proton moves in the plane of this paper toward the top of the
page. A...
asked 14 minutes ago -
different divisions differing lines of business use
different costs of capital because their cost of equity...
asked 10 minutes ago -
Give an algorithm to determine whether or not the elements
of
an array of integers are...
asked 17 minutes ago -
. Gravimetric analysis. The gravimetric analysis that we will
perform in lab occurs according to the...
asked 36 minutes ago -
Learning curve problem:
A company was ordered to make 6 custom made parts. the labor
costs...
asked 33 minutes ago -
When you don’t recall operator precedences you can Guess
Experiment with the compiler Look in a...
asked 36 minutes ago