Answered step by step
Verified Expert Solution
Question
1 Approved Answer
10.9 Please help and show work. Thanks 8. Suppose the capital budget was $100,000. What is the NPV of the best project(s)? WACC= PI 10.00%
10.9 Please help and show work. Thanks
8.
Suppose the capital budget was $100,000. What is the NPV of the best project(s)?
WACC= PI 10.00% Fixed Budget = $250,000 Project Initial Investmen PV of Inflow: NPV IRR A -$80,000 $100,000 $20,000 B -$70,000 $112,000 $42,000 -$100,000 $145,000 $45,000 D -$40,000 $36,000 -$4,000 E -$60,000 $79,000 $19,000 F -$110,000 $126,500 $16,500 12.00% 20.00% 16.00% 8.00% 15.00% 11.00% 1.25 1.60 1.45 0.90 1.32 1.15 Ranking by NPV Project Initial Investmen PV of Inflow: NPV IRR -$100,000 $145,000 $45,000 B -$70,000 $112,000 $42,000 A -$80,000 $100,000 $20,000 E -$60,000 $79,000 $19,000 F -$110,000 $126,500 $16,500 D -$40,000 $36,000 -$4,000 PI 16.00% 20.00% 12.00% 15.00% 11.00% 8.00% Investment NPV $100,000 $45,000 $170,000 $87,000 $250,000 $107,000 1.45 1.60 1.25 1.32 1.15 0.90 PI Ranking by IRR or PL Project Initial Investmen PV of Inflow: NPV B -$70,000 $112,000 $42,000 -$100,000 $145,000 $45,000 E -$60,000 $79,000 $19,000 -$80,000 $100,000 $20,000 F -$110,000 $126,500 $16,500 D -$40,000 $36,000 -$4,000 ULLA IRR 20.00% 16.00% 15.00% 12.00% 11.00% 8.00% Investment NPV $70,000 $42,000 $170,000 $87,000 $230,000 $106,000 1.60 1.45 1.32 1.25 1.15 0.90
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started