Question
Please help me answer these 10 question. Would really help out if theres show work on it, so I can calculate better.. If not then
Please help me answer these 10 question. Would really help out if theres show work on it, so I can calculate better.. If not then still good.
Anything is helpful
Question 1
A company is considering two mutually exclusive projects. Both require an initial investment of $10,000 at t = 0. Project X has an expected life of 2 years with after-tax cash inflows of $6,000 and $7,900 at the end of Years 1 and 2, respectively. Project Y has an expected life of 4 years with after-tax cash inflows of $4,300 at the end of each of the next 4 years. Each project has a cost of capital 8%.
Use the replacement chain approach to determine the NPV of the most profitable project.
A. | 4324.87 | |
B. | 3852.45 | |
C. | 5120.75 | |
D. | 4242.14 |
Question 2
A company is considering two mutually exclusive projects. Both require an initial investment of $10,000 at t = 0. Project X has an expected life of 2 years with after-tax cash inflows of $6,000 and $7,900 at the end of Years 1 and 2, respectively. Project Y has an expected life of 4 years with after-tax cash inflows of $4,300 at the end of each of the next 4 years. Each project has a cost of capital 8%.
Find the EAA for project X.
A. | 1458.25 | |
B. | 1125.36 | |
C. | 1047.28 | |
D. | 1305.76 |
Question 3
A company is considering two mutually exclusive projects. Both require an initial investment of $10,000 at t = 0. Project X has an expected life of 2 years with after-tax cash inflows of $6,000 and $7,900 at the end of Years 1 and 2, respectively. Project Y has an expected life of 4 years with after-tax cash inflows of $4,300 at the end of each of the next 4 years. Each project has a cost of capital 8%.
Find the EAA for project Y.
A. | 1158.36 | |
B. | 1089.65 | |
C. | 1478.24 | |
D. | 1280.79 |
Question 4
Suppose you have a project with the following cash flows and 10% required return.
0 | -5000 |
1 | 2000 |
2 | 2500 |
3 | -500 |
4 | 3000 |
5 | 3000 |
What is the NPV of this project?
A. | 2836.45 | |
B. | 1687.52 | |
C. | 2420.44 | |
D. | 1847.36 |
Question 5
Suppose you have a project with the following cash flows and 10% required return.
0 | -5000 |
1 | 2000 |
2 | 2500 |
3 | -500 |
4 | 3000 |
5 | 3000 |
What is the IRR of this project?
A. | 18.63% | |
B. | 26.44% | |
C. | 21.36% | |
D. | 22.85% |
Question 6
Suppose you have a project with the following cash flows and 10% required return.
0 | -5000 |
1 | 2000 |
2 | 2500 |
3 | -500 |
4 | 3000 |
5 | 3000 |
What is the PI of this project?
A. | 1.48 | |
B. | 1.58 | |
C. | 1.38 | |
D. | 1.28 |
Question 7
Suppose you have a project with the following cash flows and 10% required return.
0 | -5000 |
1 | 2000 |
2 | 2500 |
3 | -500 |
4 | 3000 |
5 | 3000 |
What is the MIRR of this project?
A. | 22.65% | |
B. | 29.54% | |
C. | 18.49% | |
D. | 15.87% |
Question 8
Suppose you have a project with the following cash flows and 10% required return.
0 | -5000 |
1 | 2000 |
2 | 2500 |
3 | -500 |
4 | 3000 |
5 | 3000 |
What is the payback of this project?
A. | 3.33 years | |
B. | 4 years | |
C. | 2.53 years | |
D. | 2.89 years |
Question 9
Suppose you have a project with the following cash flows and 10% required return.
0 | -5000 |
1 | 2000 |
2 | 2500 |
3 | -500 |
4 | 3000 |
5 | 3000 |
What is the discounted payback of this project?
A. | 3.73 years | |
B. | 4.79 years | |
C. | 3.33 years | |
D. | 4.18 years |
Question 10
Suppose you have the following 2 projects with the following cash flows and 10% required return.
0 | -4000 | -6000 | ||
1 | 1500 | 2000 | ||
2 | 2000 | 3000 | ||
3 | 2000 | 1500 | ||
4 | 1500 | 2000 | ||
5 | 1500 | |||
6 | 1500 | |||
What is the EAA of the best project?
A. | -714.36 | |
B. | 589.77 | |
C. | 486.98 | |
D. | 652.36 |
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