Question
QUESTION 11 Project X has a net present value (NPV) of $48.52 thousand and an internal rate of return (IRR) of 30.85% while Project Y
QUESTION 11 Project X has a net present value (NPV) of $48.52 thousand and an internal rate of return (IRR) of 30.85% while Project Y has a net present value (NPV) of $72.19 thousand and an internal rate of return (IRR) of 25.69%. If these projects are mutually exclusive and the company's WACC is 7%, what should the company do? Take neither of the projects Take only Project X because it has the higher IRR Take only Project Y because it has the higher NPV Take both of the projects because their NPVs are positive and their IRRs exceed the WACC
QUESTION 12 Project Marmot has an upfront cost of $50,000 and will generate cash flows of $16,000 per year for the next 5 years. What is the project's net present value (NPV) if the WACC is 10%? $5,228.54 $7,099.57 $9,057.06 $10,652.59 $14,071.64
QUESTION 13 Project Marmalade has an upfront cost of $70,000 and will generate cash flows of $23,000 per year for the next 5 years. What is the project's internal rate of return (IRR)? 17.57% 18.03% 19.21% 21.57% 25.41%
QUESTION 14 Project Marmot has an upfront cost of $50,000 and will generate cash flows of $16,000 per year for the next 5 years. What is the project's modified internal rate of return (MIRR) if the WACC is 10%? 14.33% 15.92% 16.12% 17.24% 18.96%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started