Principles of Finance (FIN 3213) Net Present Value and Internal Rate of Return Homework I/19, 10 points due 11:59 p.m., Friday 11/19/21 Consider the following ANNUAL cash flows from 5 potential capital budgeting projects (AE). NOTE that the negative cash flows in year 0 are the initial cash flows, 1 A --250 50 90 140 80 Year 0 1 2 3 4. 5 6 7 8 9 10 B -375 45 55 65 35 45 35 25 IS 5 -350 350 210 165 55 45 D - 750 200 235 250 265 100 50 E -1150 80 135 190 255 315 380 1 10 275 100 45 25 Using a 10% required rate of return, calculate the NPV and the IRR for each project 2 Consider the following annual cash flows from two potential capital budgeting projects. Each of these projects requires an initial investment (CF) equal to $10,000. Year 1 2 3 4 5 Project X $10,000 20,000 30,000 30,000 20,000 Project Z $40,000 30,000 20,000 10.000 20,000 Answer the following regarding these two projects: . Using a required rate of return equal to 8% per year, calculate the NPV and the IRR for each project B. Based on your answers to part A, which of the two projects should be chosen assuming that the two are independent projects? Why? C Based on your answers to part A, which of the two projects should be chosen ansioning that the two are mutually exclusive projects? Why? Principles of Finance (FIN 3213) Net Present Value and Internal Rate of Return Homework I/19, 10 points due 11:59 p.m., Friday 11/19/21 Consider the following ANNUAL cash flows from 5 potential capital budgeting projects (AE). NOTE that the negative cash flows in year 0 are the initial cash flows, 1 A --250 50 90 140 80 Year 0 1 2 3 4. 5 6 7 8 9 10 B -375 45 55 65 35 45 35 25 IS 5 -350 350 210 165 55 45 D - 750 200 235 250 265 100 50 E -1150 80 135 190 255 315 380 1 10 275 100 45 25 Using a 10% required rate of return, calculate the NPV and the IRR for each project 2 Consider the following annual cash flows from two potential capital budgeting projects. Each of these projects requires an initial investment (CF) equal to $10,000. Year 1 2 3 4 5 Project X $10,000 20,000 30,000 30,000 20,000 Project Z $40,000 30,000 20,000 10.000 20,000 Answer the following regarding these two projects: . Using a required rate of return equal to 8% per year, calculate the NPV and the IRR for each project B. Based on your answers to part A, which of the two projects should be chosen assuming that the two are independent projects? Why? C Based on your answers to part A, which of the two projects should be chosen ansioning that the two are mutually exclusive projects? Why