Question
The NPV of project C is $nothing. (Round to the nearest cent.) Is project C acceptable?(Select the best answer below.) A. Yes B. No The
The NPV of project C is
$nothing.
(Round to the nearest cent.)
Is project C acceptable?(Select the best answer below.)
A.
Yes
B.
No
The NPV of project D is
$nothing.
(Round to the nearest cent.)
Is project D acceptable?(Select the best answer below.)
A.
No
B.
Yes
b.Rank acceptable projects by NPV.
Project C
Project D
Project A
Project B
is ranked number 1.(Select from the drop-down menu.)
Project A
Project D
Project B
Project C
is ranked number 2.(Select from the drop-down menu.)
Project D
Project C
Project B
Project A
is ranked number 3.(Select from the drop-down menu.)
c.Calculate the IRR of each project and use it to determine the highest cost of capital at which all of the projects would be acceptable.
The IRR of project A is
nothing%.
(Round to two decimal places.)
The IRR of project B is
nothing%.
(Round to two decimal places.)
The IRR of project C is
nothing%.
(Round to two decimal places.)
The IRR of project D is
nothing%.
(Round to two decimal places.)
What is the highest cost of capital at which all of the projects would be acceptable?(Choose the correct answer.)
11.90%
16.75%
17.65%
18.47%
NPV, with rankings Botany Bay, Inc., a maker of casual clothing, is considering four projects shown in the following table, E. Because of past financial difficulties, the company has a high cost of capital at 14.9%. a. Calculate the NPV of each project, using a cost of capital of 14.9%. b. Rank acceptable projects by NPV. c. Calculate the IRR of each project and use it to determine the highest cost of capital at which all of the projects would be acceptable. a. Calculate the NPV of each project, using a cost of capital of 14.9% Data Table - X The NPV of project Ais $. (Round to the nearest cent.) Is project A acceptable? (Select the best answer below.) (Click on the icon located on the top-right corner of the data table below in order to copy its O A. No contents into a spreadsheet.) OB. Yes Project A Project B Project C Project D Initial investment (CF) $49.800 $100,900 $81,000 $180,000 The NPV of project B is $ (Round to the nearest cent.) Year(t) Cash inflows (CF) Is project B acceptable? (Select the best answer below.) $20,700 $37,000 $19,700 $99,900 2 $20,700 $50,300 $40,200 $80,000 O A. Yes $20,700 $51,400 $59,400 $60.600 O B. No 1 Print Done Click to select your answer(s)
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