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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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