Question #22 please show work

CHAPTER 8 Net Present Value and Other Investment Criteria 269 ack Period and IRR. Suppose you have a project with a payback Payboct exactly equal to the life of the project. What do you know about the of the project? Suppose that the payback period is never. What do you ow about the IRR of the project now? NPV and Discount Rates. An investment has an installed cost of $745.382. 20N cash flows over the four-year life of the investment are projected to be 65.381, $304,172, $225,153, and $208,614. If the discount rate is zero, is the NPV? If the discount rate is infinite, what is the NPV? At what discount rate is the NPV just equal to zero? Sketch the NPV profile for this investment based on these three points. NPV and Payback Period. Kaleb Konstruction, Inc., hasthe following mutually exclusive projects available. The company has historically used a ear cutoff for projects. The required return is 10 percent. Project F Project G -180,000$280,000 64,800 86,400 123,600 166,800 187,200 93,600 64,800 81,600 72,000 64,800 5 a. b. c. Calculate the payback period for both projects. Calculate the NPV for both projects. Which project, if any, should the company accept? 05 22. MIRR. Mittuch Corp. is evaluating a project with the following cash flows: Year Cash Flow -$27,500 10,430 13,850 11,270 9,830 - 4,050 0 2 4 5 company uses an interest rate of 10 percent on all of its projects. Calculate the MIRR of the project using all three methods NTERMEDIATE (Questions 23-27) R. Suppose the company in the previous problem uses a discount rate of II percent and a reinvestment rate of 8 percent on all of its projects. Calculate the MIRR of the project using all three methods with these rates. Crossover and NPV. Seether, Inc., has the following two mutually exclusive projects available. 23 24. Project S Year Project R $45,000 76,000 17,000 19,000 21,000 9,000 7,000 20,000 20,000 35,000 30,000 10,000 5