Assume the company can get an unlimited amount of capital at that cost. If the company's cost of capital is 5%, what is the net present value of each Project? What's the profit foregone if IRR method is used?

Select one:

ANSWER IS A

a.NPVS = $63.66, NPVL = $95.02, $31.36

Continued from previous question. If the company's cost of capital is 15%, what is the net present value of each Project? Based on NPV, which project will you choose?

Select one:

ANSWER IS E

e.NPVS = $21.58, NPVL = $15.23, S

I NEED THIS ONE ANSWERED

Continued from previous question. Which of the following statements is correct?

Select one:

a.The crossover rate should be between 15% and 20%.

b.If the WACC is smaller than the crossover rate, you will choose project S using the NPV method.

c.The crossover rate should be smaller than 10%.

d.The crossover rate should be between 10% and 15%.

e.If the WACC larger than the crossover rate, a conflict arises between the NPV and the IRR methods.