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Dravid, Inc., is currently evaluating three projects that are independent. The cost of funds can be either 13.6 percent or 14.8 percent depending on their
Dravid, Inc., is currently evaluating three projects that are independent. The cost of funds can be either 13.6 percent or 14.8 percent depending on their financing plan. All three projects cost the same at $500,000. Expected cash flow streams are shown in the following table. If the appropriate discount rate is 14.8%: (Round your answer to 2 decimal places. All intermittent calculations should be rounded to 4 decimal places before carrying to next calculation. If the number is negative identify with a negative symbol (-). The company should pick all projects with a positive NPV) NPV of project 1 is $ NPV of project 2 is $ NPV of project 3 is $ Dravid should accept project(s) 1 and 331 and 22 and 3all projectsnone of the projects21. If the appropriate discount rate is 13.6 percent: NPV of project 1 is $ NPV of project 2 is $ NPV of project 3 is $ Dravid should accept project(s) 12 and 32all projects1 and 23none of the projects1 and 3. Year Project 1 Project 2 Project 3 1 0 0 $297,508 2 $105,463 0 $178,383 3 $182,790 $561,300 $136,260 4 $431,100 $377,050 $74,451 Trident Corp. is evaluating two independent projects. The costs and expected cash flows are given in the following table. The cost of capital is 12.43 percent. Year A B 0 -$333,892 -$404,208 1 124,717 148,992 2 124,717 162,615 3 124,717 159,621 4 124,717 120,740 5 124,717 110,727 (Round your answer to 2 decimal places. All intermittent calculations should be rounded to 4 decimal places before carrying to next calculation. If the number is negative identify with a negative symbol (-).) a. The NPV of project A is $ and project B is $ . b. The IRR of Project A is % and Project B is %. c. Trident should choose project Aneither projectBoth projectsproject B.
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