Post a New Question

finance

posted by .

P5
For the following projects, compute NPV, IRR, MIRR, profitability index, and payback. If these projects are mutually exclusive, which one(s) should be done? If they are independent, which one(s) should be undertaken?

Year 0 -1,000 -1,500 -500 -2,000
Year 1 400 500 100 600
Year 2 400 500 300 800
Year 3 400 700 250 200
Year 4 400 200 200 300
Discount rate 10% 12% 15% 8%

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. financial management

    "NPV and IRR methods result in conflicts only if mutually exclusive projects. What do you consider mutually exclusive projects and how would you rank these projects?
  2. Finance

    Consider the following projects, for a firm using a discount rate of 10%: project NPV IRR PI A $200,000 12.2% 1.04 B $200,001 11% 1.01 C $60,000 10.1% 1.61 D $(235,000) 9% .95 If the projects are independent, which, if any, project(s) …
  3. Financial Management (Math)

    2. Your firm is considering two projects: Project A and Project B with the following cash flows: A YEAR B YEAR -$75 0 -$60 0 $15 1 $20 1 $33 2 $13 2 $44 3 $15 3 $55 4 $18 4 a. Calculate the NPVs based on WACCs of 5% and 7% b. What …
  4. Math

    2. Your firm is considering two projects: Project A and Project B with the following cash flows: A YEAR B YEAR -$75 0 -$60 0 $15 1 $20 1 $33 2 $13 2 $44 3 $15 3 $55 4 $18 4 a. Calculate the NPVs based on WACCs of 5% and 7% b. What …
  5. finance

    All techniques with NPV profile- mutually exclusive projects. Projects A and B, of equal risk. Are alternatives for expanding Rosa Company’s capacity. The firm’s cost of capital is 13%. The cash flows for each project are shown …
  6. financ

    All techniques with NPV profile- mutually exclusive projects. Projects A and B, of equal risk. Are alternatives for expanding Rosa Company’s capacity. The firm’s cost of capital is 13%. The cash flows for each project are shown …
  7. Finance

    Capital Budgeting Problems I. Indigo Industrial, Inc. is trying to determine which, if any, of five different projects it should undertake. Indigo Industrial has a 8.25% required rate of return on projects that it undertakes. The projected …
  8. Math

    Indigo Industrial, Inc. is trying to determine which, if any, of five different projects it should undertake. Indigo Industrial has a 8.25% required rate of return on projects that it undertakes. The projected cash flows for each of …
  9. financial management

    1)The cost of a project is $500,000 and the present value of the net cash inflows is $625,000. What is the increase in value of the firm as a result of accepting the project.2)A project has an initial outlay of $100,000, a cash inflow …
  10. Math

    Using the following cash flows for projects A and B, use payback period, discounted payback period, NPV, IRR, and MIRR to see if these are good projects or not. > Project A: (283,000); 46,000; 89,000; 104,000; 123,000; 187,000; …

More Similar Questions

Post a New Question