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Xia plans to invest any unused cash today at the risk-free interest rate of 9.8%. In one year, all cash will be paid to investors

image text in transcribed Xia plans to invest any unused cash today at the risk-free interest rate of 9.8%. In one year, all cash will be paid to investors and the company will be shut down. a. What is the NPV of each project? Which projects should Xia undertake and how much cash should it retain? b. What is the total value of Xia's assets (projects and cash) today? c. What cash flows will the investors in Xia receive? Based on these cash flows, what is the value of Xia today? e. Exnlain the relationshin in vour answers to narts (b). (c). and (d). C. Projects A and B have positive NPV, and Xia has enough cash, so Xia should take them. D. All projects have positive NPV, and Xia has enough cash, so Xia should take all of them. b. What is the total value of Xia's assets (projects and cash) today? The total value of Xia's assets (projects and cash) today is $124200.37. (Round to the nearest cent.) c. What cash flows will the investors in Xia receive? The cash flows Xia will pay to investors in one year is \$ (Round to the nearest cent.) Based on these cash flows, what is the value of Xia today? Based on these cash flows, the value of Xia today is \$ (Round to the nearest cent.) d. Suppose Xia pays any unused cash to investors today, rather than investing it. What are the cash flows to investors in this case? The amount of cash investors will receive today is $ (Round to the nearest cent.) The amount of cash investors will receive in one year is $ (Round to the nearest cent.)

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