Question
Image transcription text Yogurt Boy, Inc. is considering two mutually exclusive projects whose expected net cash flows are in the table below. The company's WACC
Image transcription text
Yogurt Boy, Inc. is considering two mutually exclusive projects whose expected net cash flows are in the table below. The company's WACC is 13%. a. What is the NPV for Project Y? b. What is the NPV for Project Z? c. What is the IRR for Project Y? d. What is the IRR for Project Z? e. Which Project, if any, should you choose? (10 points) Time Project Y Project Z 0 $ (420.00) $ (950.00) 1 $ (572.00) $ 270.00 2 $ (189.00) $ 270.00 3 $ (130.00) $ 270.00 4 $ 1,300.00 $ 270.00 5 $ 720.00 $ 270.00 6 $ 980.00 $ 270.00 7 $ (225.00) $ 270.00
Yogurt Boy, Inc. is considering two mutually exclusive projects whose expected net cash flows are in the table below. The company's WACC is 13%. a. What is the NPV for Project Y? b. What is the NPV for Project Z? c. What is the IRR for Project Y? d. What is the IRR for Project Z? e. Which Project, if any, should you choose? (10 points) Time Project Y Project Z 0 $ (420.00) $ (950.00) 1 $ (572.00) $ 270.00 2 $ (189.00) $ 270.00 3 $ (130.00) $ 270.00 4 $1,300.00 $ 270.00 5 $ 6 $ 720.00 $270.00 980.00 $270.00 7 $ (225.00) $ 270.00
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