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PLEASE SHOW YOUR WORK ON EXCEL or the formula's used so it's easy to understand XYZ Corp. is considering a project that has the following

PLEASE SHOW YOUR WORK ON EXCEL or the formula's used so it's easy to understand

XYZ Corp. is considering a project that has the following cash flow data.What is the project's IRR?Note that a project's IRR can be less than the WACC or negative, in both cases it will be rejected.

Year0123

Cash flows-$1,200$300$400$600

7.WWW Company is considering a project that has the following cash flow data. What is the project's IRR?Note that a project's IRR can be less than the WACC or negative, in both cases it will be rejected.

Year01234

Cash flows-$1,400$400$400$600$600

8.Talent Inc. is considering a project that has the following cash flow data.

(a) What is the project's payback period?

(b) What is the project's discounted payback period?

Assume the cost of capital is 12%.

Year0123

Cash flows-$1,150$500$500$600

9.Redesign Inc. is considering a project that has the following cash flow data.

(a) What is the project's payback period?

(b) What is the project's discounted payback period?

Assume the cost of capital is 8%.

Year0123

Cash flows-$500$200$200$200

10 .ABC Inc.'s stock has a 30% chance of producing a 10% return, a 40% chance of

producing a 0% return, and a 30% chance of producing a -5% return.What is the firm's

expected rate of return?

11.XYZInc. is considering a capital budgeting project that has an expected return of 20%

and a standard deviation of 10%.What is the project's coefficient of variation?

12.An Investor has $200,000 invested in a 2-stock portfolio.$60,000 is invested in Stock X

and the remainder is invested in Stock Y.X's beta is 1.2 and Y's beta is 1.5.What is the

portfolio's beta?

13.Calculate the required rate of return for Best Inc., assuming that (1) investors expect a

1% rate of inflation in the future, (2) the real risk-free rate is 3%, (3) the market risk premium

is 5.0%, (4) the firm has a beta of 1.2, and (5) its realized rate of return has averaged 10.0%

over the last 5 years.

14.Calculate the required rate of return for Hope Inc., assuming that (1) investors expect a

1.5% rate of inflation in the future, (2) the real risk-free rate is 2.0%, (3) the market return on

S&P 500 Index is 10%, (4) the firm has a beta of 2.0, and (5) its realized rate of return has

averaged 10.0% over the last 5 years.

15.Chance Inc's stock has an expected return of 10%, a beta of 1.7, and is in

equilibrium.Assume the nominal risk-free rate is 4.00%.

(a) what is the market risk premium?

(b) What is the equity risk premium?

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