Question
11.Frazier Fudge, Inc. is considering 2 mutually exclusive projects with the following cash flows. Which project should be accepted? Assume a cost of capital of
11.Frazier Fudge, Inc. is considering 2 mutually exclusive projects with the following cash flows. Which project should be accepted? Assume a cost of capital of 10%.
------Years--------------Project X------------- Project Y----
-------0--------------------($350)-----------------($350)----------
-------1---------------------$130-------------------$200-----------
-------2---------------------$150-------------------$120-----------
-------3---------------------$180-------------------$120-----------
a. Project X because NPV is $27.4
b. Project Y because NPV is $31
c. Project X because IRR is 13.7%
d. Project Y because IRR is 12.2%
Please: I need all the process, step by step and calculations
12.The following projects are all characterized by a single initial cash outflow (the initial investment) followed by a series of cash inflows. Rank them based on profi
--------------------------------------Investment------------------------------------ NPV
Project A--------------------------$160,000--------------------------------------$30,000-------
Project B--------------------------$120,000--------------------------------------$15,000-------
Project C--------------------------$110,000--------------------------------------$25,000-------
Project D--------------------------$200,000--------------------------------------$40,000-------
a.A, C, B, D
b.C, D, A, B
c.D, A, C, B
d. B, D, C, A
Please: I need all the process, step by step and calculations.
how is determined each amounts ?
no excel tables with results without process calculations.....
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