Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem Two MAZI CO is considering a Project xwhose cash flows are shown below Year CF 0 $1,200 1 5600 2 3 5550 $300 The

image text in transcribed
image text in transcribed
image text in transcribed
Problem Two MAZI CO is considering a Project "xwhose cash flows are shown below Year CF 0 $1,200 1 5600 2 3 5550 $300 The company has WACC of 7 The company is thinking also of another two projects & Twith the following information Projects 2 NPV 596.00 $2819 MIRR 6201 1.245 IRR 12.41 10.000 Payback Period 1.44 years 2.33 Years 1. NPV for "Xis: $86 $250 $600 -$1,200 2. MIRR for "X"is: o 11.00% 9.50% 8.88% 15.64% 3. Pay Back Period "x" is: O 1.93 Years 2.17 Years 2.06 Years 3.00 Years 4. Discounted Pay BSK POTOX is: 4. Discounted Pay Back Period "x" is: * 2.06 Years 1.64 Years 2.65 Years 3.00 Years 5. Assuming the three projects X, Y&Z are independent then based on NPV criteria we can choose: OXY&Z X&Y Only x Only Y 6. Assuming the three projects X, Y&Z are Mutual Exclusive then based on NPV criteria we can choose:* O XY&Z X&Z Only Only z ! 7. Assuming the three projects X.YAZ are independent then based on MIRR criteria we can choose: OXY&Z X&Z Only X Only z 8. Assuming the three projects X, Y&Z are Mutual Exclusive then based on MIRR criteria we can choose: OXY&Z X&Y Only x Only z 9. IF IRR for "X" is 11.00% and the three project X,Y & Z are independent then based on IRR criteria we can choose OXY&Z X&Y Only x Only Y 10. Based on Discounted Payback Period we should choose Only X Only Y Only z XY&Z

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Finance Theory And Policy

Authors: Paul Krugman, Maurice Obstfeld, Marc Melitz

12th Global Edition

1292417005, 978-1292417004

More Books

Students also viewed these Finance questions

Question

What is overfitting? Why is it so important to watch out for?

Answered: 1 week ago