only question (9-20)

919 Following is information about two indepen- dent projects that a company is evaluating: re&iq Following are the results of to evaluate. analyses: bitern% projeces NPV IRR - Payback 55.300 12.0% 6.8 years Abert 7 years (1,800) 8.0 Josie 6 4,500 10.0 Kenny 10 5.8 9.6 Accept I Rect Net present value Internal rate of return mscanted payback $5,000 15.5% 5.1 $4950 17.0% 4.6 920 (a) Which project(s) should be chosen? Explain why. (b) What can be concluded about the com- Pany's required rate Of return, r? The CFO of Horatio's Hotels gave three college interns three different independent projects The CFO agrees with the final accept]reject cision that each intern made. But she Spotted an error in the numbers reported by one of interns. (a) Which intern's report has the erron (b) Does the information given here provide an indication of the firm's required rate Of return? Explain your answers. 919 Following is information about two indepen- dent projects that a company is evaluating: re&iq Following are the results of to evaluate. analyses: bitern% projeces NPV IRR - Payback 55.300 12.0% 6.8 years Abert 7 years (1,800) 8.0 Josie 6 4,500 10.0 Kenny 10 5.8 9.6 Accept I Rect Net present value Internal rate of return mscanted payback $5,000 15.5% 5.1 $4950 17.0% 4.6 920 (a) Which project(s) should be chosen? Explain why. (b) What can be concluded about the com- Pany's required rate Of return, r? The CFO of Horatio's Hotels gave three college interns three different independent projects The CFO agrees with the final accept]reject cision that each intern made. But she Spotted an error in the numbers reported by one of interns. (a) Which intern's report has the erron (b) Does the information given here provide an indication of the firm's required rate Of return? Explain your answers.