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Why not? Piercy, LLC, has identified the following two mutually exclusive projects: Year01234CashFlow(A)$52,00028,00022,00017,00012,400CashFlow(B)$52,00015,80019,80024,00025,800 a-1. What is the IRR for each of these projects? (Do not
Why not?
Piercy, LLC, has identified the following two mutually exclusive projects: Year01234CashFlow(A)$52,00028,00022,00017,00012,400CashFlow(B)$52,00015,80019,80024,00025,800 a-1. What is the IRR for each of these projects? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a-2. If you apply the IRR decision rule, which project should the company accept? b-1. Assume the required return is 11 percent. What is the NPV for each of these projects? (Do not round intermedlate calculations and round your answers to 2 decimal places, e.g., 32.16.). b-2. Which project will you choose of you apply the NPV decision rule? c-4. Over what range of discount rates would you choose Project A? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.9., 32.16.) c-2. Over what range of discount rates would you choose Project B? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) d. At what discount rate would you be indifferent between these two projects? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.gn, 32.16.) The Whenworth Corporation is trying to choose between the following two mutiually exclusive design projects: Year,CashFlow(i)0123CashFlow(ii)$75,00028,50035,00041,000$33,00010,50022,50016,500 a-1. If the required return is 13 percent, what is the profitability index for each project? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) a-2. If the company applies the profitability index decision rule, which project should it : take? b-1. If the required return is 13 percent, what is the NPV for each project? (Do not round intermedlate calculations and round your answers to 2 decimal places, e.g., 32.16.) b-2. If the company applies the net present value decision rule, which project should it take? Bausch Company is presented with the following two mutually exclusive projects.ithe required return for both projects is 16 percent. a. What is the IRR for each project? (Do inot round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.9., 32.16.) c. Which, if either, of the projects should the company accept? Coore Manufacturing has the following two possible projects. The required return is 14 percent. a. What is the profitability Index for each project? (Do not round interinediate calculations and round your answers to 3 decimal places, e.g., 32.151.) b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. Which, if either, of the projects should the company accept? Crenshaw Enterprises has gathered projected cash flows for two projects. a. At what interest rate would the company be indifferent between the two projects? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. Which project is better if the required return is above this interest rate? Doak Corp. Is evaluating a project with the following cash flows: The company uses an interest rate of 11 percent on all of its projects. Calculate the MiRR of the project using all three methods. (Do not round intermediate calcufatlons and enter your answers as a percent rounded to 2 decimal places, e.g.; 32.16.) Hanse, Inc., has the following two mutually exclusive projects available. a. What is the crossover rate for these two projects? (Bo not round intermedilate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.15. b. What is the NPV of each project at the crossover rate? (Do not round intermegllate: zetculations and round your answers to 2 decimal places, e.g., 32.16.) Kaleb Konstruction, Inc., has the following mutually exclusive projects avallable. The company has historically used a three-year cutoff for projects. The required return is 13 percent. a. Calculate the payback period for both projects. (Do not round interyrediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. Calculate the NPV for both projects. (Do not round intermedlate calculations and. round your answers to 2 decimal places, e.g; 32.16.) c. Which project, if any, should the company accept? Piercy, LLC, has identified the following two mutually exclusive projects: Year01234CashFlow(A)$52,00028,00022,00017,00012,400CashFlow(B)$52,00015,80019,80024,00025,800 a-1. What is the IRR for each of these projects? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a-2. If you apply the IRR decision rule, which project should the company accept? b-1. Assume the required return is 11 percent. What is the NPV for each of these projects? (Do not round intermedlate calculations and round your answers to 2 decimal places, e.g., 32.16.). b-2. Which project will you choose of you apply the NPV decision rule? c-4. Over what range of discount rates would you choose Project A? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.9., 32.16.) c-2. Over what range of discount rates would you choose Project B? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) d. At what discount rate would you be indifferent between these two projects? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.gn, 32.16.) The Whenworth Corporation is trying to choose between the following two mutiually exclusive design projects: Year,CashFlow(i)0123CashFlow(ii)$75,00028,50035,00041,000$33,00010,50022,50016,500 a-1. If the required return is 13 percent, what is the profitability index for each project? (Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161.) a-2. If the company applies the profitability index decision rule, which project should it : take? b-1. If the required return is 13 percent, what is the NPV for each project? (Do not round intermedlate calculations and round your answers to 2 decimal places, e.g., 32.16.) b-2. If the company applies the net present value decision rule, which project should it take? Bausch Company is presented with the following two mutually exclusive projects.ithe required return for both projects is 16 percent. a. What is the IRR for each project? (Do inot round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.9., 32.16.) c. Which, if either, of the projects should the company accept? Coore Manufacturing has the following two possible projects. The required return is 14 percent. a. What is the profitability Index for each project? (Do not round interinediate calculations and round your answers to 3 decimal places, e.g., 32.151.) b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. Which, if either, of the projects should the company accept? Crenshaw Enterprises has gathered projected cash flows for two projects. a. At what interest rate would the company be indifferent between the two projects? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. Which project is better if the required return is above this interest rate? Doak Corp. Is evaluating a project with the following cash flows: The company uses an interest rate of 11 percent on all of its projects. Calculate the MiRR of the project using all three methods. (Do not round intermediate calcufatlons and enter your answers as a percent rounded to 2 decimal places, e.g.; 32.16.) Hanse, Inc., has the following two mutually exclusive projects available. a. What is the crossover rate for these two projects? (Bo not round intermedilate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.15. b. What is the NPV of each project at the crossover rate? (Do not round intermegllate: zetculations and round your answers to 2 decimal places, e.g., 32.16.) Kaleb Konstruction, Inc., has the following mutually exclusive projects avallable. The company has historically used a three-year cutoff for projects. The required return is 13 percent. a. Calculate the payback period for both projects. (Do not round interyrediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. Calculate the NPV for both projects. (Do not round intermedlate calculations and. round your answers to 2 decimal places, e.g; 32.16.) c. Which project, if any, should the company accept Step by Step Solution
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