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Need assistance with completing the following assignment. I need to show all work for the attached 6 questions. Corporate Financial Management Week 6 Homework -

Need assistance with completing the following assignment. I need to show all work for the attached 6 questions.

image text in transcribed Corporate Financial Management Week 6 Homework - Chapter 5 1. Calculating Payback Period and NPV Fuji Software Inc., has the following mutually exclusive projects Year 0 1 2 3 Project A -$15,000 9,500 6,000 2,400 Project B -$18,000 10,500 7,000 6,000 a. Suppose Fuiji's payback period cutoff is two years. Which of these two projects should be chosen? b. Suppose Fuiji uses the NPV rule to rank these two projects. Which project should be chosen if the appropriate discount rate is 15%? 11. NPV versus IRR Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation (BRC). Both projects require an annual return of 14%. Year 0 1 2 3 Deepwater Fishing -$950,000 370,000 510,000 420,000 New Submarine Ride -$1,850,000 900,000 800,000 750,000 a. If your decision rule is to accept the project with the greater IRR, which project should you choose? c. To be prudent you compute the NPV for both projects. Which project should you choose? Is it consistent with the incremental IRR rule? 18. Comparing Investment Criteria Consider the following cash flows of two mutually exclusive projects for Tokyo Rubber Company. Assume the discount rate for Tokyo Rubber Company is 10%. Year 0 1 2 3 Dry Prepreg -$1,700,000 1,100,000 900,000 750,000 b. Based on NPV, which project should be taken? c. Based on the IRR, which project should be taken? Solvent Prepreg -$750,000 375,000 600,000 390,000

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