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You are considering two crowdfunding opportunities. Both are for prospective new personal computer manufacturers, Banana and Pear. Each requires that you to pay an initial
You are considering two crowdfunding opportunities. Both are for prospective new personal computer manufacturers, Banana and Pear. Each requires that you to pay an initial cost of $75,000, and your projected cash flows are listed below. Year 0 1 2 Banana Pear IS (25.000.00ls (75.000.00 IS 12,182.42S 43,000.00 $ 20.000,00 29.500.00 IS s 25,184.56S 5.000.00 IS 15.000.00 30,000.00 IS 25.000.000 $ 7,800.00 4 5 A. Assuming the weighted average cost of capital (WACC) k 10.5%, cakulate the payback period, discounted payback period, NPV, and IRR. If the projects are mutually exclusive, which should be selected using the NPV criterion WACC 10.5% Banana Pear Payback Period Discounted Payback Period NPY IRR Best Project? Hint: Use a formula here! B. Create an NPV profile chart for projects Banana and Pear. What is the exact crossover rate for these two projects Cross Over rate NPV Banana NPV Pear Place Chart Here! NPV Profile Data WACC % 0.0% 1.5% 3.0% 4.5% 6.6% 1.5% 9.0% 10.5% 12.6% 13.5% 15.6% 16.5% 18.6% 19.5% 21.6% 22.5% You are considering two crowdfunding opportunities. Both are for prospective new personal computer manufacturers, Banana and Pear. Each requires that you to pay an initial cost of $75,000, and your projected cash flows are listed below. Year 0 1 2 Banana Pear IS (25.000.00ls (75.000.00 IS 12,182.42S 43,000.00 $ 20.000,00 29.500.00 IS s 25,184.56S 5.000.00 IS 15.000.00 30,000.00 IS 25.000.000 $ 7,800.00 4 5 A. Assuming the weighted average cost of capital (WACC) k 10.5%, cakulate the payback period, discounted payback period, NPV, and IRR. If the projects are mutually exclusive, which should be selected using the NPV criterion WACC 10.5% Banana Pear Payback Period Discounted Payback Period NPY IRR Best Project? Hint: Use a formula here! B. Create an NPV profile chart for projects Banana and Pear. What is the exact crossover rate for these two projects Cross Over rate NPV Banana NPV Pear Place Chart Here! NPV Profile Data WACC % 0.0% 1.5% 3.0% 4.5% 6.6% 1.5% 9.0% 10.5% 12.6% 13.5% 15.6% 16.5% 18.6% 19.5% 21.6% 22.5%
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