Question
Calculate each project's NPV. Round your answers to two decimal places. Do not round your intermediate calculations. Enter your answers in millions. For example, an
Calculate each project's NPV. Round your answers to two decimal places. Do not round your intermediate calculations. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55.
Plan A: $ fill in the blank 2 million
Plan B: $ fill in the blank 3 million
Calculate each project's IRR. Round your answer to two decimal places.
Plan A: fill in the blank 4%
Plan B: fill in the blank 5%
By graphing the NPV profiles for Plan A and Plan B, approximate the crossover rate to the nearest percent.
fill in the blank 6%
Calculate the crossover rate where the two projects' NPVs are equal. Round your answer to two decimal places.
fill in the blank 7%
Why is NPV better than IRR for making capital budgeting decisions that add to shareholder value? The input in the box below will not be graded, but may be reviewed and considered by your instructor.
NEED THE FORMAL Solve.
| Project NPV Calculations: | Formulas | ||
| NPVA | #N/A | ||
| NPVB | #N/A | ||
| Project IRR Calculations: | |||
| IRRA | #N/A | ||
| IRRB | #N/A | ||
| NPV Profiles: | |||
| Discount Rates | NPVA | NPVB | |
| $0.00 | $0.00 | ||
| 0% | $0.00 | $0.00 | |
| 5% | $0.00 | $0.00 | |
| 10% | $0.00 | $0.00 | |
| 15% | $0.00 | $0.00 | |
| 20% | $0.00 | $0.00 | |
| 22% | $0.00 | $0.00 | |
| 25% | $0.00 | $0.00 |
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The Essentials Of Machine Learning In Finance And Accounting
Authors: Mohammad Zoynul Abedin, M. Kabir Hassan, Petr Hajek, Mohammed Mohi Uddin
1st Edition
