How to you solve problem 20 with a B11 finance calculator?
Multiple IRR. Consider the following cash flows: Confirm that one internal rate of return on this project is (a shade above) 7% and Out the other is (a shade below) 34%. What is project NPV if the discount rate is 5%? What if it is 20%? 40%? Why is NPV positive at midrange discount rates but not at very high or very low rates. Profitability Index. What is the profitability index of a project that costs $10,000 and provides cash flows of $3,000 in years 1 and 2 and $5,000 in years 3 and 4? The discount rate is 9%. (LO8-3) Profitability Index. Consider the following projects: (LO8-3) Calculate die profitability index for A and B assuming a 22% opportunity cost of capital According in the profitability index rule, which project(s) should you accept? Capital Rationing. You are a manager with an investment budget of $8 million. You may invest in the following projects. Investment and cash flow figures are in millions of dollars. Multiple IRR. Consider the following cash flows: Confirm that one internal rate of return on this project is (a shade above) 7% and Out the other is (a shade below) 34%. What is project NPV if the discount rate is 5%? What if it is 20%? 40%? Why is NPV positive at midrange discount rates but not at very high or very low rates. Profitability Index. What is the profitability index of a project that costs $10,000 and provides cash flows of $3,000 in years 1 and 2 and $5,000 in years 3 and 4? The discount rate is 9%. (LO8-3) Profitability Index. Consider the following projects: (LO8-3) Calculate die profitability index for A and B assuming a 22% opportunity cost of capital According in the profitability index rule, which project(s) should you accept? Capital Rationing. You are a manager with an investment budget of $8 million. You may invest in the following projects. Investment and cash flow figures are in millions of dollars