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What are the answers to the following questions below? fairly tricky! Question 1 Not yet answered Marked out of 1.00 '7 Flag question Question 2

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What are the answers to the following questions below? fairly tricky!

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Question 1 Not yet answered Marked out of 1.00 '7 Flag question Question 2 Not yet answered Marked out of 1.00 '7 Flag question When the undertaking of Project A does not affect the incremental cash ows for Project B, we refer to projects A and B as projects. Select one: C\"; a. mutually exclusive C\" b. independent C\Question 3 Fargo Inc. is considering a project that will require an initial investment of $2 million. The project will provide incremental cash inows of $600,000 for the next ve years. If the required return on the project is 15%, what is its discounted payback? Should the project be Notyetanswered _ h h d'f h . _ ff h h Id. f 7 Markedoutof'mo givent ego-a ea | t ecompanysmvestmentcuto t res 0 IS Ive years. '7 Flag question Select one: A a. 3 years and 11.55 months; yes A b. 4 years and 10 months; yes A c. 4years and 11.55 months: yes A d. 5 years: no A e. Syears and 1 month; no Question 6 Mr. Gallagher is considering replacing his 10-year-old car with a new one. The new car will cost $20,000, taking into consideration the Notyetanswered trade-in value of the old car. The new car will save Mr. Gallagher $3,000 per year in terms of gasoline, repairs, and maintenance. Mr. Marked out Oh 00 Gallagher plans to keep this new car for 10 years. What is the internal rate of return on the new car? V Flag question Select one: A a. 5.00% C b. 8.14% A- c, 9.43% A d. 10.41% C\Question 7 Not yet answered Marked out of 'I .00 '7 Flag question Question 8 Not yet answered Marked out of 'I .00 '7 Flag question Questlon 9 Not yet answered Marked out of 'I .00 '7 Flag question A project will cost $20,000 today and yield cash Inows of $1 5,000 and $25,000 at the end of Year 1 and Year 2, respectively. At the end of Year 3, the project will require an additional clean-up cost of $5,000. The required rate of return for similar projects is 10%. What is the MIRR of this project if we use the reinvestment approach? Select one: C\Question 10 What should a manager do with a project that has two internal rates of return (IRRs)? Not yet answered Marked out of'l.00 SEIeCt mm: C\"; a. Do the project if the higher of the two lRRs exceeds the cost of capital. V Flag question C\"; b. Do the project if the lower of the two IRRs exceeds the cost of capital. C\"; c, Do the project if the net present value of the project is greater than zero, C\"; d. Choose the IRR that looks the most reasonable, and do the project if this chosen IRR is greater than the cost of capital. C\"; e. Abandon the project, as it involves unconventional cash ows

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