Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

first part is right, cant figure out the other parts in my excel Zayas, LLC, has identified the following two mutually exclusive projects: Year Cash

first part is right, cant figure out the other parts in my excel
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Zayas, LLC, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$52,000 -$52,000 28,000 15,800 2. 22,000 19,800 3 17,000 24,000 4 12,400 25,800 ONM a. What is the IRR for each of these projects? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Project A Project B Internal rate of return 22.83 % 21.16% if you apply the IRR decision rule, which project should the company accept? Project A b. Assume the required return is 11 percent. What is the NPV for each of these projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Project A Project B Net present value % % Which project will you choose if you apply the NPV decision rule? c. Over what range of discount rates would you choose Project A? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Project A % Over what range of discount rates would you choose Project B? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) Project B % At what discount rate would you be indifferent between these two prolects? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Discount rate %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Equity Valuation And Portfolio Management

Authors: Frank J. Fabozzi, Harry M. Markowitz

1st Edition

047092991X, 9780470929919

More Books

Students also viewed these Finance questions

Question

Check that /() = 0 and /() = 1.

Answered: 1 week ago

Question

2. Explain grades or test results.

Answered: 1 week ago

Question

Describe contextual influences on direct financial compensation.

Answered: 1 week ago

Question

Describe legally required benefits.

Answered: 1 week ago

Question

Discuss career development and career development methods.

Answered: 1 week ago