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please answer correctly thank you the risent is that its * adjusted discount The weakness of using a single risk dusted discount rate to adjust
please answer correctly
thank you
the risent is that its * adjusted discount The weakness of using a single risk dusted discount rate to adjust for the relative risk of proposed investment is that its use assumes that: the risk of the project is constant over time. the risk of the project increases constantly over time. the risk of the project can be accurately measured. the risk of the project changes over the life of the project. the risk of the project decreases over constantly time. The following information applies to questions 11 through 14. Projects X and Y have the following expected net cash flows: Year Project X Project Y $-110,000 -$110,000 60,000 10,000 50,000 50,000 40,000 60,000 30,000 80,000 11. If the required rate of return is 12 percent, what is the net present value for the Project X? $ 34,894 $ 28,578 $ 32,337 $ 26,533 $ 30,968 e. 12. What is the Internal Rate of Return for the Project X? 26.6 percent 22.4 percent 18.7 percent 12.0 percent 38.3 percent 13. Given your answer to question 11 above, what is the profitability index for Project X? 1.37 1.22 1.18 e. 1.28 1.50 What is the crossover rate for Project's X and Y? (At what discount rate will the NPV of Project X equal the NPV of Project Y?) 13.3 percent d. 12.0 percent 18.7 percent 16.4 percent c. 15.3 percentStep by Step Solution
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