Question
Here are the cash flows for two mutually exclusive projects: Project C 0 C 1 C 2 C 3 A $ 30,800 +$ 12,200 +$
Here are the cash flows for two mutually exclusive projects:
Project | C0 | C1 | C2 | C3 | |||||||||||
A | $ | 30,800 | +$ | 12,200 | +$ | 12,200 | +$ | 12,200 | |||||||
B | 30,800 | 0 | 0 | + | 38,700 | ||||||||||
a. Given the following interest rates (0%, 2%, 4%, 6%, 8%, 10%, 12%, 14%, 16%, 18%, 20%), above what interest rates would you prefer project A to B?
b. What is the IRR of each project? (Round your answers to 2 decimal places.)
The following are the cash flows of two projects:
Year | Project A | Project B | ||||
0 | $ | (330 | ) | $ | (330 | ) |
1 | 160 | 230 | ||||
2 | 160 | 230 | ||||
3 | 160 | 230 | ||||
4 | 160 | |||||
If the opportunity cost of capital is 12%, what is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 4 decimal places.
The following are the cash flows of two projects:
Year | Project A | Project B | ||||
0 | $ | (270 | ) | $ | (270 | ) |
1 | 150 | 170 | ||||
2 | 150 | 170 | ||||
3 | 150 | 170 | ||||
4 | 150 | |||||
What are the internal rates of return on projects A and B? (Enter your answers as a percent rounded to 2 decimal places.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started