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You've estimated the following cashflows for two projects to be: Year 0: Project A: -128 Project B:-275.2 Year 1: Project A: 78 Project B:156 Year

You've estimated the following cashflows for two projects to be:

Year 0: Project A: -128 Project B:-275.2

Year 1: Project A: 78 Project B:156

Year 2: Project A: 112 Project B:224

Year 3: Project A: 97 Project B:194

Year 4:Project A: 99 Project B: 198

Year 5:Project A: -277 Project B:-512.45

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Part 6 Attempt 1/1 What is the correct" IRR for project A? (Hint: In your dynamic excel model you need to utilize the 'my better GoalSeekIRR" button and utlizing rate for maximum NPV from data table (not using Excel's DataTable tool) and Excel's IRR (refer to Dynamic PVmodel_Using Template2021.v2_20210216.xlsm). 3+ decimals Save Part 7 Attempt 1/1 What is the discount rate that maximizes the NPV of project A? (Hint: In your dynamic excel model you need to utilize the "Find Discount Rate for Max NPV button (refer to DynamicNPVmodel_Using Template2021.12 20210216.xlsm). 3+ decimals Save Part 8 - Attempt 1/1 Is there more than one rate that would make the NPV of Project B equal to zero (i.e. is it possible that Project B has multiple IRRs)? 0 Yes O No Save Part 9 Attempt 111 What is the correct" IRR for project B? (Hint: In your dynamic excel model you need to utilize the "my better GoalSeek.RR' button and utliizing rate for maximum NPV from data table (not using Excel's DataTable tool) and Excel's IRR (refer to DynamicNPVmodel_Using Template2021.02.20210216.xlsm). 3+ decimals Save Part 10 Attempt 1/1 What is the discount rate that maximizes the NPV of Project B? (Hint: In your dynamic excel model you need to utilize the "Find Discount Rate for Max NPV" button (refer to DynamicNPVmodel_Using Template2021.12 20210216.xlsm). 3+ decimals Save Part 11 Attempt 1/1 What is the crossover rate between the two projects, i.e. rate which makes the NPV Project A equal to NPV of Project B2 (Refer to the sample crossover rate calculation and chart in excel. Hint: IRR of column labeled CFs A-B is 10.22% the . example below). Sample Crossover Rate Image If sample crossover rate image does not display correctly, it is also available in Blackboard Assignments section where you will need to upload your Part B excel file. 3+ decimals Save Part 12 - Attempt 1/1 If the projects are mutually exclusive, which project should you choose using the IRR decision rule? O Project B O Project A Save - Part 13 Attempt 1/1 If the projects are mutually exclusive, which project should you choose using the NPV decision rule if required rate of return is 20%? O Project B O Project A Save - Part 14 Attempt 1/1 If the projects are mutually exclusive, which project should you chooseusing the NPV decision rule if required rate of return is 46%? O Project B O Project A Part 6 Attempt 1/1 What is the correct" IRR for project A? (Hint: In your dynamic excel model you need to utilize the 'my better GoalSeekIRR" button and utlizing rate for maximum NPV from data table (not using Excel's DataTable tool) and Excel's IRR (refer to Dynamic PVmodel_Using Template2021.v2_20210216.xlsm). 3+ decimals Save Part 7 Attempt 1/1 What is the discount rate that maximizes the NPV of project A? (Hint: In your dynamic excel model you need to utilize the "Find Discount Rate for Max NPV button (refer to DynamicNPVmodel_Using Template2021.12 20210216.xlsm). 3+ decimals Save Part 8 - Attempt 1/1 Is there more than one rate that would make the NPV of Project B equal to zero (i.e. is it possible that Project B has multiple IRRs)? 0 Yes O No Save Part 9 Attempt 111 What is the correct" IRR for project B? (Hint: In your dynamic excel model you need to utilize the "my better GoalSeek.RR' button and utliizing rate for maximum NPV from data table (not using Excel's DataTable tool) and Excel's IRR (refer to DynamicNPVmodel_Using Template2021.02.20210216.xlsm). 3+ decimals Save Part 10 Attempt 1/1 What is the discount rate that maximizes the NPV of Project B? (Hint: In your dynamic excel model you need to utilize the "Find Discount Rate for Max NPV" button (refer to DynamicNPVmodel_Using Template2021.12 20210216.xlsm). 3+ decimals Save Part 11 Attempt 1/1 What is the crossover rate between the two projects, i.e. rate which makes the NPV Project A equal to NPV of Project B2 (Refer to the sample crossover rate calculation and chart in excel. Hint: IRR of column labeled CFs A-B is 10.22% the . example below). Sample Crossover Rate Image If sample crossover rate image does not display correctly, it is also available in Blackboard Assignments section where you will need to upload your Part B excel file. 3+ decimals Save Part 12 - Attempt 1/1 If the projects are mutually exclusive, which project should you choose using the IRR decision rule? O Project B O Project A Save - Part 13 Attempt 1/1 If the projects are mutually exclusive, which project should you choose using the NPV decision rule if required rate of return is 20%? O Project B O Project A Save - Part 14 Attempt 1/1 If the projects are mutually exclusive, which project should you chooseusing the NPV decision rule if required rate of return is 46%? O Project B O Project A

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