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PLEASE PLEASE HELP ANSWER QUESTIONS 6-10 ASAP!!! THANKS SO MUCH Suppose you are offered $9,500 today but must make the following payments: 1.25 points Year
PLEASE PLEASE HELP ANSWER QUESTIONS 6-10 ASAP!!! THANKS SO MUCH
Suppose you are offered $9,500 today but must make the following payments: 1.25 points Year voor Cash Flows 0 $ 9,500 1 -4,900 2 -3,600 3 -2,700 4 -2,000 eBook Print a. What is the IRR of this offer? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) References IRR % b. If the appropriate discount rate is 12 percent, should you accept this offer? Accept O Reject c. If the appropriate discount rate is 22 percent, should you accept this offer? O Reject O Accept d-1. What is the NPV of the offer if the appropriate discount rate is 12 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d-2. What is the NPV of the offer if the appropriate discount rate is 22 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d-1. NPV d-2. NPV Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation (BRC). Both projects require an annual return of 17 percent. Deepwater 1.25 Year Fishing points o 21,000,000 420,000 2 550,000 470,000 New Submarine Ride 1,950,000 1,000,000 850,000 850,000 eBook Print a-1. Compute the IRR for both projects. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) References Deepwater Fishing Submarine Ride a-2. Based on the IRR, which project should you choose? O Deepwater Fishing O Submarine Ride b-1. Calculate the incremental IRR for the cash flows. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) 1.25 points Incremental IRR L % eBook Print b-2. Based on the incremental IRR, which project should you choose? References Deepwater Fishing Submarine Ride C-1. Compute the NPV for both projects. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Deepwater Fishing Submarine Ride c-2. Based on the NPV, which project should you choose? O Submarine Ride O Deepwater Fishing c-3. Is the NPV decision consistent with the incremental IRR rule? O No Yes Wii Brothers, a game manufacturer, has a new idea for an adventure game. It can market the game either as a traditional board game or as an interactive DVD, but not both. Consider the following cash flows of the two mutually exclusive projects for the company. Assume the discount rate is 8 percent. 1.25 points Year Board Game DVD 0 -$1,000 72,300 650 1,550 700 1,350 170 600 eBook WN - Print References a. What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. What is the IRR for each project? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) d. What is the incremental IRR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) years years a. Board game DVD b. Board game DVD Board game DVD d. Incremental IRR Solo Corp. is evaluating a project with the following cash flows: 1.25 points O-NM Cash Flow -$28,400 10,600 13,300 15,200 12,300 - 8,800 eBook Print The company uses a discount rate of 12 percent and a reinvestment rate of 7 percent on all of its projects. References Calculate the MIRR of the project using the discounting approach. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) MIRR Calculate the MIRR of the project using the reinvestment approach. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) MIRR % Calculate the MIRR of the project using the combination approach. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) MIRR % Butler International Limited is evaluating a project in Erewhon. The project will create the following cash flows: 1.25 points Year omt Cash Flow 1,230,000 405,000 470,000 365,000 320,000 eBook Print All cash flows will occur in Erewhon and are expressed in dollars. In an attempt to improve its economy, the Erewhonian government has declared that all cash flows created by a foreign company are "blocked" and must be reinvested with the government for one year. The reinvestment rate for these funds is 4 percent. References If the company uses a required return of 10 percent on this project, what are the NPV and IRR of the project? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations and round your final answers to 2 decimal places, e.g., 32.16. Enter your IRR answer as a percent.) NPV IRR
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