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Please help with this question and all the requirements. Thank you! Vargas Products is trying to decide which of the following projects to invest in:
Please help with this question and all the requirements. Thank you!
Vargas Products is trying to decide which of the following projects to invest in: Project A costs $290,000 and offers eight annual net cash inflows of $65,000. Project B costs $380,000 and offers nine annual net cash inflows of $70,000 Compute the IRR of each project and use this information to identify the better investment. 2 (Click the icon to view the present value annuity table.) 2 (Click the icon to view the present value table.) (Click the icon to view the future value annuity table.) (Click the icon to view the future value table.) First, compute the IRR of each project. The IRR for Project A is Reference Reference 20% 12% 16% 18% 2 Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 2 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.6901.647 1.605 1.566 1.528 3 2.9412.884 2.829 2.775 2.723 2.673 2.577 2.487 2.4022.322 2.246 2.174 2.106 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 5 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 6 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.8893.685 3.498 3.326 7 6.728 6.4726.230 6.002 5.786 5.5825.206 4.868 4.564 4.288 4.039 3.812 3.605 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4 344 4.078 3.837 9 8.566 8.1627.786 | 7.435 7.108 6.802 6.247 5.759 5.328 4.9464.607 4.303 4.031 10 9.4718.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 12 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.439 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 5.3424.910 4.533 14 13.004 12.106 11.29610.563 9.899 9.295 8.244 7.3676.628 6.0025.468 5.008 4.611 15 13.865 12.849 11.938 11.11810.380 9.7128.559 7.606 6.811 6.142 5.575 5.092 4.675 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 5.929 5.353 4.870 25 22.023 19.52317.41315.622 14.094 12.783 10.675 9.077 7.8436.873 6.097 5.467 4.948 30 25.80822.39619.600 17.292 15.372 13.765 11.258 9.427 8.055 7.003 6.1775.517 4.979 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.7798.244 7.105 6.233 5.548 4.997 Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 14% 20% 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 0.980 0.9610.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.7430.7180.694 3 0.9710.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 4 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 5 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 8 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 9 0.914 0.837 0.766 0.703 0.645 0.5920.500 0.424 0.361 0.308 0.263 0.225 0.194 10 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 11 0.896 0.8040.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 12 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 13 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.1820.145 0.116 0.093 14 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 15 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 20 0.820 0.673 0.554 0.456 0.377 0.3120.215 0.149 0.104 0.073 0.051 0.037 0.026 25 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.0160.010 30 0.742 0.552 0.412 0.308 0.231 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 40 0.672 0.453 0.307 0.208 0.142 0.097 0.046 0.022 0.0110.005 0.003 0.001 0.001 Click to select your answer(s) and then click Ched Print Done Print Done parts remaining Check Answer Score: 0 of 5 pts 4 of 6 (0 complete) HW Score: 0%, 0 of 30 pts E12-28A (similar to) Question Help Vargas Products is trying to decide which of the following projects to invest in: Project A costs $290,000 and offers eight annual net cash inflows of $65,000. Project B costs $380,000 and offers nine annual net cash inflows of $70,000. Compute the IRR of each project and use this information to identify the better investment. (Click the icon to view the present value annuity table.) 9 (Click the icon to view the present value table.) (Click the icon to view the future value annuity table.) (Click the icon to view the future value table.) First, compute the IRR of each project. The IRR for Project A is Reference -X X Reference Periods Future Value of $1 Periods 2 3 4 4% 1.040 1.082 1.125 1.170 1.217 5 1% 1.010 1.020 1.030 1.041 1.051 1.062 1.072 1.083 1.094 1.105 6% 1.060 1.124 1.191 1.262 1.338 3 4 5 3% 1.030 1.061 1.093 1.126 1.159 1.194 1.230 1.267 1.305 1.344 2.436 2% 1.020 1.040 1.061 1.082 1.104 1.126 1.149 1.172 1.195 1.219 1.243 1.268 1.294 1.319 1.346 8% 1.080 1.166 1.260 1.360 1.469 1.587 1.714 1.851 1.999 2.159 1.419 1.504 6 7 8 9 10 6 7 8 9 10 5% 1.050 1.103 1.158 1.216 1.276 1.340 1.407 1.477 1.551 1.629 1.710 1.796 1.886 1.980 2.079 2.653 3.386 4.322 7.040 10% 1.100 1.210 1.331 1.464 1.611 1.772 1.949 2.144 2.358 2.594 2.853 3.138 3.452 3.797 4.177 6.727 10.835 17.449 45.259 1% 1.000 2.010 3.030 4.060 5.101 6.152 7.214 8.286 9.369 10.462 11.567 12.683 13.809 14.947 16.097 22.019 28.243 34.785 48.886 12% 1.120 1.254 1.405 1.574 1.762 1.974 2.211 2.476 2.773 3.106 3.479 3.896 4.363 4.887 5.474 9.646 17.000 29.960 93.051 2% 1.000 2.020 3.060 4.122 5.204 6.308 7.434 8.583 9.755 10.950 12.169 13.412 14.680 15.974 17.293 24.297 32.030 40.568 60.402 14% 16% 18% 20% 1.140 1.160 1.180 1.200 1.300 1.346 1.392 1.440 1.482 1.561 1.643 1.728 1.689 1.811 1.939 2.074 1.925 2.100 2.288 2.488 2.195 2.700 2.986 2.502 2.826 3.185 3.583 2.853 3.278 3.759 4.300 3.252 3.803 4.435 3.707 4.411 5.234 6.192 4.226 5.117 6.176 7.430 4.818 5.936 7.288 8.916 5.492 6.886 8.599 10.699 6.261 7.988 10.147 12.839 7.138 9.266 15.407 13.743 19.461 27.393 38.338 26.462 40.874 62.669 95.396 50.950 85.850 143.371 237.376 188.884 378.721 750.378 1,469.772 1.594 1.689 1.791 5.160 3% 1.000 2.030 3.091 4.184 5.309 6.468 7.662 8.892 10.159 11.464 12.808 14.192 15.618 17.086 18.599 26.870 36.459 47.575 75.401 4% 1.000 2.040 3.122 4.246 5.416 6.633 7.898 9.214 10.583 12.006 13.486 15.026 16.627 18.292 20.024 29.778 41.646 56.085 95.026 Future Value of Annuity of $1 5% 6% 8% 10% 12% 14% 16% 18% 20% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2.050 2.060 2.080 2.100 2.120 2.140 2.160 2.180 2.200 3.153 3.184 3.246 3.310 3.374 3.440 3.506 3.572 3.640 4.310 4.375 4.506 4.641 4.779 4.921 5.066 5.215 5.368 5.526 5.637 5.867 6.105 6.353 6.610 6.877 7.154 7.442 6.802 6.975 7.336 7.716 8.115 8.536 8.977 9.442 9.930 8.142 8.394 8.923 9.487 10.089 10.730 11.414 12.142 12.916 9.549 9.897 10.637 11.436 12.300 13.233 14.240 15.327 16.499 11.027 11.491 12.488 13.579 14.776 16.085 17.519 19.086 20.799 12.578 13.181 14.487 15.937 17.549 19.337 21.321 23.521 25.959 14.207 14.972 16.645 18.531 20.655 23.045 25.733 28.755 32.150 15.917 16.870 18.977 21.384 24.133 27.271 30.850 34.931 39.581 17.713 18.882 21.495 24.523 28.029 32.089 36.786 42.219 48.497 19.599 21.015 24.215 27.975 32. 393 37.581 43,672 50.818 21.579 23.276 27.152 31.772 37.280 43.842 51.660 60.965 72.035 33.066 36.786 45.762 57.275 72.052 91.025 115.380 146.628 186.688 47.727 54.865 73.106 98.347 133.334 181.871 249.214 342.603 471.981 66.439 79.058 113.283 164.494 241.333 356.787 530.312790.948 1,181.882 120.800 154.762 259.057 442.593 767.091 1,342.0252,360.757 4.163.2137.343.858 1.265 1.316 1.369 1.423 1.480 1.539 1.601 1.665 1.732 1.801 2.191 2.666 3.243 4.801 1.116 1.384 2.332 11 12 13 14 15 59.196 11 12 13 14 15 1.127 1.138 1.149 1.161 1.898 2.012 2.133 2.261 2.397 1.426 1.469 1.513 1.558 1.806 2.094 2.427 3.262 11.974 2.518 2.720 2.937 3.172 4.661 6.848 10.063 21.725 20 25 30 40 20 25 30 40 1.220 1.282 1.348 1.489 1.486 1.641 1.811 2.208 3.207 4.292 5.743 10.286 Click to Print Done parts rema Print Done CheckStep by Step Solution
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