. www.my Vm www. > 10 Blo Maclack Pro O eren erre 3 : 5 6 7 8 E R T Y U 1 P C 3 1 D F G H J K L > x V B N M ? I 20 36 Command en Simms Corp. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC or negative, in both cases it will be rejected. 0 Year Cash flows 1 $500 2 $500 3 $500 -$1,225 3.6.984 O . 10.85 c. 22:45 d. 24.40 @ 4.7.48 Ofcon Key A-Z Tesar Chemicals is considering Projects S and I, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable The CEO believes the IRR is the best selection criterion, while the CFO advocates the NPV. If the decision is made by choosing the project with the higher IRR rather than the one with the higher NPV how much, if any, value will be forgone, le, what's the chosen NPV versus the maximum possiblo NPV? Note that (1) true value is measured by NPV, and (2) under some conditions the choice of IRR vs. NPV will have no effect on the value gained or lost. 1 2 WACC 6.25% o 0 CES -51.100 -$2.700 OlO 2.519624 Ot 10.00 $100 $550 S850 3 $100 5800 3600 $725 o CFL $1,400 d. 532153 5490.40 Okey Question 1200 MC.11.101 Al . www.my Vm www. > 10 Blo Maclack Pro O eren erre 3 : 5 6 7 8 E R T Y U 1 P C 3 1 D F G H J K L > x V B N M ? I 20 36 Command en Simms Corp. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC or negative, in both cases it will be rejected. 0 Year Cash flows 1 $500 2 $500 3 $500 -$1,225 3.6.984 O . 10.85 c. 22:45 d. 24.40 @ 4.7.48 Ofcon Key A-Z Tesar Chemicals is considering Projects S and I, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable The CEO believes the IRR is the best selection criterion, while the CFO advocates the NPV. If the decision is made by choosing the project with the higher IRR rather than the one with the higher NPV how much, if any, value will be forgone, le, what's the chosen NPV versus the maximum possiblo NPV? Note that (1) true value is measured by NPV, and (2) under some conditions the choice of IRR vs. NPV will have no effect on the value gained or lost. 1 2 WACC 6.25% o 0 CES -51.100 -$2.700 OlO 2.519624 Ot 10.00 $100 $550 S850 3 $100 5800 3600 $725 o CFL $1,400 d. 532153 5490.40 Okey Question 1200 MC.11.101 Al
