Answered step by step
Verified Expert Solution
Question
1 Approved Answer
i posted the solution and how to do it please need urgent A company is analycing twe mutualy exdusive projects, 5 and L, with the
i posted the solution and how to do it please need urgent
A company is analycing twe mutualy exdusive projects, 5 and L, with the following cash flews: The companys wack is 9.0\%, What is the ark or the oefter project? (Hint: The better project may or may not be the one wath the higher IRR.) Round your answer to two decimal places. % A company is anaiyzing two nutuaily exclusive projects, S and L, with the following cash flows: Pn The campany's WACC is 9.0%. What is the LRR of the better project? (hint: The better project may or may not be the one with the higher IRR.) Round your answer to two Gecimal places. x 7 Malde Fendibiche Incorrect - Post Submiasian feedbock Solution Inewt the appropriate cash fioms into the cash flew regster, and then calculate NFY at 9% and the tap of each of the projects: for NPPs = 127. 45; IRAS = 14.35\%, A Cernaively, to calculate the NPV, NiPy =51.000+5861.04/(1.090)+52.60/1.090)2+515/(1.090)3+510/(1.090)4= 627,45. IUS is best calculated using a financial caiculateri Prosect LI CFO =1,000,CF1=0,CF2=240;CF3=380,CF4=607,42;1/Mi=9. Solve for NPVL =467,43; tRRL =11.15%, AtternativelV, to calculate the NPV, NPVL=11,000+50/(1.000)+5240/(1.050)2+5380/(1.090)3+5507.42/(1,090)4= 167.43. 18. as best calculated using a financial calculater? Because Project L has the higher NPV, it is the testec project; even though its Iar is less than Preject Sis IsR. The tar of the better project is IRAL =11.15% 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