Question
Project L costs $47,185.32, its expected cash inflows are $10,000 per year for 10 years, and its WACC is 11%. What is the project's IRR?
Project L costs $47,185.32, its expected cash inflows are $10,000 per year for 10 years, and its WACC is 11%. What is the project's IRR? Round your answer to two decimal places.
%
Project L costs $60,000, its expected cash inflows are $13,000 per year for 8 years, and its WACC is 13%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.
%
Project L costs $60,000, its expected cash inflows are $15,000 per year for 8 years, and its WACC is 14%. What is the project's payback? Round your answer to two decimal places.
years
Your division is considering two projects with the following cash flows (in millions):
0 | 1 | 2 | 3 |
Project A | -$25 | $5 | $10 | $17 |
Project B | -$20 | $10 | $9 | $6 |
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What are the projects' NPVs assuming the WACC is 5%? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to two decimal places. Project A: $ million Project B: $ million
What are the projects' NPVs assuming the WACC is 10%? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to two decimal places. Project A: $ million Project B: $ million
What are the projects' NPVs assuming the WACC is 15%? Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to two decimal places. Project A: $ million Project B: $ million
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What are the projects' IRRs assuming the WACC is 5%? Do not round intermediate calculations. Round your answer to two decimal places. Project A: % Project B: %
What are the projects' IRRs assuming the WACC is 10%? Do not round intermediate calculations. Round your answer to two decimal places. Project A: % Project B: %
What are the projects' IRRs assuming the WACC is 15%? Do not round intermediate calculations. Round your answer to two decimal places. Project A: % Project B: %
A company is analyzing two mutually exclusive projects, S and L, with the following cash flows:
0 | 1 | 2 | 3 | 4 |
Project S | -$1,000 | $881.00 | $260 | $15 | $5 |
Project L | -$1,000 | $0 | $250 | $380 | $843.71 |
The company's WACC is 9.0%. What is the IRR of the better project? (Hint: The better project may or may not be the one with the higher IRR.) Round your answer to two decimal places.
%
A firm is considering two mutually exclusive projects, X and Y, with the following cash flows:
0 | 1 | 2 | 3 | 4 |
Project X | -$1,000 | $100 | $300 | $370 | $650 |
Project Y | -$1,000 | $1,100 | $110 | $45 | $50 |
The projects are equally risky, and their WACC is 10%. What is the MIRR of the project that maximizes shareholder value? Do not round intermediate calculations. Round your answer to two decimal places.
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