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Please help me with the attached finance questions. Thank you. 1. A project has an initial cost of $64,825, expected net cash inflows of $10,000

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Please help me with the attached finance questions. Thank you.

image text in transcribed 1. A project has an initial cost of $64,825, expected net cash inflows of $10,000 per year for 7 years, and a cost of capital of 8%. What is the project's PI? Do not round your intermediate calculations. Round your answer to two decimal places. 2. Your division is considering two investment projects, each of which requires an up-front expenditure of $19 million. You estimate that the investments will produce the following net cash flows: Year Project A Project B 1 $ 5,000,000 $20,000,000 2 10,000,000 10,000,000 3 20,000,000 7,000,000 a. What are the two projects' net present values, assuming the cost of capital is 5%? Round your answers to the nearest dollar. Project A $ Project B $ What are the two projects' net present values, assuming the cost of capital is 10%? Round your answers to the nearest dollar. Project A $ Project B $ What are the two projects' net present values, assuming the cost of capital is 15%? Round your answers to the nearest dollar. Project A $ Project B $ b. What are the two projects' IRRs at these same costs of capital? Round your answers to two decimal places. Project A % Project B % 3. Edelman Engineering is considering including two pieces of equipment, a truck and an overhead pulley system, in this year's capital budget. The projects are independent. The cash outlay for the truck is $15,000, and that for the pulley system is $21,000. The firm's cost of capital is 11%. After-tax cash flows, including depreciation, are as follows: Year 1 2 3 4 5 Truck $5,100 5,100 5,100 5,100 5,100 Pulley $7,500 7,500 7,500 7,500 7,500 a. Calculate the IRR for each project. Round your answers to two decimal places. Truck: % Pulley: % b. Calculate the NPV for each project. Round your answers to the nearest dollar, if necessary. Enter each answer as a whole number. For example, do not enter 1,000,000 as 1 million. Truck: $ Pulley: $ c. Calculate the MIRR for each project. Round your answers to two decimal places. Truck: % Pulley: % 4. Davis Industries must choose between a gas-powered and an electric-powered forklift truck for moving materials in its factory. Since both forklifts perform the same function, the firm will choose only one. (They are mutually exclusive investments.) The electric-powered truck will cost more, but it will be less expensive to operate; it will cost $23,000, whereas the gaspowered truck will cost $17,100. The cost of capital that applies to both investments is 11%. The life for both types of truck is estimated to be 6 years, during which time the net cash flows for the electric-powered truck will be $6,500 per year and those for the gas-powered truck will be $4,950 per year. Annual net cash flows include depreciation expenses. a. Calculate the NPV for each type of truck. Round your answers to the nearest dollar. Electric-powered truck $ Gas-powered truck $ b. Calculate the IRR for each type of truck. Round your answers to two decimal places. Electric-powered truck % Gas-powered truck % 5. Project S has a cost of $11,000 and is expected to produce benefits (cash flows) of $3,400 per year for 5 years. Project L costs $23,000 and is expected to produce cash flows of $6,900 per year for 5 years. Calculate the two projects' IRRs. Round your answers to two decimal places. 1. A project has an initial cost of $64,825, expected net cash inflows of $10,000 per year for 7 years, and a cost of capital of 8%. What is the project's PI? Do not round your intermediate calculations. Round your answer to two decimal places. Ans. 0.80 2. Your division is considering two investment projects, each of which requires an up-front expenditure of $19 million. You estimate that the investments will produce the following net cash flows: Year Project A Project B 1 $ 5,000,000 $20,000,000 2 10,000,000 10,000,000 3 20,000,000 7,000,000 a. What are the two projects' net present values, assuming the cost of capital is 5%? Round your answers to the nearest dollar. Project A $ 12108952 $12108952 Project B $ 15164777 $15164777 What are the two projects' net present values, assuming the cost of capital is 10%? Round your answers to the nearest dollar. Project A $ 8836213 $8836213 Project B $ 12705485 $12705485 What are the two projects' net present values, assuming the cost of capital is 15%? Round your answers to the nearest dollar. Project A $ 6059587 $6059587 Project B $ 10555355 $10555355 b. What are the two projects' IRRs at these same costs of capital? Round your answers to two decimal places. Project A % 29.60 A = 29.60 Project B % 54.69 B = 54.69 3. Edelman Engineering is considering including two pieces of equipment, a truck and an overhead pulley system, in this year's capital budget. The projects are independent. The cash outlay for the truck is $15,000, and that for the pulley system is $21,000. The firm's cost of capital is 11%. After-tax cash flows, including depreciation, are as follows: Year 1 2 3 4 5 Truck $5,100 5,100 5,100 5,100 5,100 Pulley $7,500 7,500 7,500 7,500 7,500 a. Calculate the IRR for each project. Round your answers to two decimal places. Truck: % 20.76 20.76 Pulley: % 23.06 23.06 4. Calculate the NPV for each project. Round your answers to the nearest dollar, if necessary. Enter each answer as a whole number. For example, do not enter 1,000,000 as 1 million. Truck: $ 3849 $3849 Pulley: $ 6719 $6719 4. Calculate the MIRR for each project. Round your answers to two decimal places. Truck: % 20.76 20.76 Pulley: % 23.06 23.06 4. Davis Industries must choose between a gas-powered and an electric-powered forklift truck for moving materials in its factory. Since both forklifts perform the same function, the firm will choose only one. (They are mutually exclusive investments.) The electric-powered truck will cost more, but it will be less expensive to operate; it will cost $23,000, whereas the gaspowered truck will cost $17,100. The cost of capital that applies to both investments is 11%. The life for both types of truck is estimated to be 6 years, during which time the net cash flows for the electric-powered truck will be $6,500 per year and those for the gas-powered truck will be $4,950 per year. Annual net cash flows include depreciation expenses. a. Calculate the NPV for each type of truck. Round your answers to the nearest dollar. Electric-powered truck $ 4499 $4499 Gas-powered truck $ 3841 $3841 b. Calculate the IRR for each type of truck. Round your answers to two decimal places. Electric-powered truck % 17.55 17.55 Gas-powered truck % 18.49 18.49 5. Project S has a cost of $11,000 and is expected to produce benefits (cash flows) of $3,400 per year for 5 years. Project L costs $23,000 and is expected to produce cash flows of $6,900 per year for 5 years. Calculate the two projects' IRRs. Round your answers to two decimal places. IRR of Project S = 16.52% IRR of Project L = 15.24%

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