A company has a 12% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 0 1 2 3 4 5 6 7 Project A -$300 -$387 -$193 -$100 $600 $600 $850 -$180 Project B -$400 $134 $134 $134 $134 $134 $134 $0 Construct NPV profiles for Projects A and B. If an amount is zero, enter 0. Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent. Discount Rate NPV Project A NPV Project B 0% $ $ 5 10 12 15 18.1 24.51
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A company has a 12% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows:
| 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| Project A | -$300 | -$387 | -$193 | -$100 | $600 | $600 | $850 | -$180 |
| Project B | -$400 | $134 | $134 | $134 | $134 | $134 | $134 | $0 |
Construct
| Discount Rate | NPV Project A | NPV Project B |
| 0% | $ | $ |
| 5 | ||
| 10 | ||
| 12 | ||
| 15 | ||
| 18.1 | ||
| 24.51 |
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- Cummings Products Company is considering two mutually exclusive investments whose expected net cash flows are as follows: Expected Net Cash Flows Year Project A Project B 0 -$340 -$630 1 -528 210 2 -219 210 3 -150 210 4 1,100 210 5 820 210 6 990 210 7 -325 210 Select the correct graph for NPV profiles for Projects A and B. The correct graph is . What is each project's IRR? Do not round intermediate calculations. Round your answers to two decimal places. Project A: % Project B: % Calculate the two projects' NPVs, if each project's cost of capital was 11%. Do not round intermediate calculations. Round your answers to the nearest cent. Project A: $ Project B: $ Which project, if either, should be selected? should be selected. Calculate the two projects' NPVs, if each project's cost of capital was 18%. Do not round intermediate calculations. Round your answers to the nearest cent. Project A: $ Project B:…A company has a 13% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 4 7 Discount Rate 0% 5 10 0 12 15 18.1 3 5 + Project A -$300 -$387 -$193 -$100 -$400 $131 $131 $131 + $600 $600 $850 $131 $131 $131 -$180 $0 Project B a. What is each project's NPV? Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent. Project A: $ Project B: $ b. What is each project's IRR? Do not round intermediate calculations. Round your answers to two decimal places. Project A: Project B: c. What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Do not round intermediate calculations. Round your answers to two decimal places. Project A: Project B: d. From your answers to parts a-c, which project would be selected? -Select- If the WACC was 18%, which project would be selected? -Select- e. Construct NPV profiles for Projects A and…A company has a 12% WACC and is considering two mutually exclusive Investments (that cannot be repeated) with the following cash flows: ° 1 2 3 4 5 6 7 Project A Project B -$300 -$400 -$387 $131 -$193 -$100 $600 $131 $131 $131 $600 $850 $131 $131 -$180 $0 a. What is each project's NPV? Negative values, if any, should be indicated by a minus sign. Do not round Intermediate calculations. Round your answers to the nearest cent. Project A: $ Project B: $ b. What is each project's IRR? Do not round intermediate calculations. Round your answers to two decimal places. Project A: Project B: % % c. What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Do not round intermediate calculations. Round your answers to two decimal places. Project A: Project B: % % d. From your answers to parts a-c, which project would be selected? -Select- v If the WACC was 18%, which project would be selected? -Select- ▼ e. Construct NPV profiles for Projects A and B. If an amount is…
- Cummings Products Company is considering two mutually exclusive investments whose expected net cash flows are as follows: EXPECTED NET CASH FLOWS Year Project A Project B 0 -$300 -$405 1 -387 134 2 -193 134 3 -100 134 4 600 134 5 600 134 6 850 134 7 -180 134 Construct NPV profiles for Projects A and B. 1.What is each project's IRR? Do not round intermediate calculations. Round your answers to two decimal place Project A % Project B % Calculate the two projects' NPVs, if you were told that each project's cost of capital was 10%. Do not round intermediate calculations. Round your answers to the nearest cent.Project A $Project B $Which project, if either, should be selected?-Select-Project AProject BItem 6Calculate the two projects' NPVs, if the cost of capital was 17%. Do not round intermediate calculations. Round your answers to the nearest cent.Project A $Project B $What would be the proper choice?-Select-Project…Consider the following projects: Cash Flows ($) Project D E CO00 C101 -11,700 23,400 -21,700 37,975 Assume that the projects are mutually exclusive and that the opportunity cost of capital is 12%. a. Calculate the profitability index for each project. b-1. Calculate the profitability-index using the incremental cash flows. b-2. Which project should you choose?A company has an 11% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 0 1 -Select- 2 3 7 + Project A -$387 -$193 -$100 $600 $600 $850 -$300 -$405 1 -$180 $0 Project B $131 $131 $131 $131 $131 $131 a. What is each project's NPV? Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent. Project A: $ % Project B: $ b. What is each project's IRR? Do not round intermediate calculations. Round your answers to two decimal places. Project A: Project B: c. What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Do not round intermediate calculations. Round your answers to two decimal places. Project A: Project B: d. From your answers to parts a-c, which project would be selected? % 4 % % 5 6 If the WACC was 18%, which project would be selected? -Select- e. Construct NPV profiles for Projects A and B. If an amount is…
- Cummings Products is considering two mutually exclusive investments whose expected net cash flows are as follows: expected Net Cash Flows Year Project A Project B 0 ($400) ($650) 1 -528 210 2 -219 210 3 -150 210 4 1100 210 5 820 210 6 990 210 7 -325 210 a. Construct NPV profiles for Projects A and B. b. What is each project’s IRR? c. If each project’s cost of capital were 10%, which project, if either, should be selected? If the cost of capital were 17%, what would be the proper choice?d. What is each project’s MIRR at the cost of capital of 10%? At 17%? (Hint: Consider Period 7 as the end of Project B’s life.)e. What is the crossover rate, and what is its significance?XY Company is considering 5 investment projects as follows: Project Investment ($) Profitability index (PI) A 10,000 1.2 B 6,000 1.1 C 18,000 1.6 D 14,000 0.9 E 12,000 1.3 The company has $30,000 available for investment. Projects C and E are mutually exclusive. All projects can be undertaken only once and are not divisible. Required: (iii)Calculate the maximum NPV earned from the projects to be picked.A firm is considering the following independent projects. Project Investment Present value offuture cash flows NPV A $130 $176 $46 B $103 $115 $12 C $183 $287 $104 D $161 $199 $38 E $184 $273 $89 What is the Profitability Index of Project B? Question 5Answer a. 0.85 b. 1.12 c. 0.89 d. 1.18
- A company has a 12% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: 0 1 3 5 6 7 -$300 -$387 -$193 -$100 $600 $600 $850 -$180 Project A Project B -$400 $131 $131 $131 $131 $131 $131 $0 a. What is each project's NPV? Negative values, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest cent. Project A: $ % Project B: $ b. What is each project's IRR? Do not round intermediate calculations. Round your answers to two decimal places. Project A: Project B: c. What is each project's MIRR? (Hint: Consider Period 7 as the end of Project B's life.) Do not round intermediate calculations. Round your answers to two decimal places. Project A: Project B: % 2 % 4 %Consider the cash flows for the investment projects given in Table. Assume that the MARR = 10%. (a) Suppose A, B, and C are mutually exclusive projects. Which project would be selected on the basis of the IRR criterion (b) Assume that projects C and È are mutually exclusive. Using the IRR criterion, which Project would you select? Net Cash Flow A В C D E -4,250 3,200 2,850 -4,250 1,500 3,250 1,600 1,200 -4,250 2,850 -4,850 2,100 2,100 2,100 2,100 2,500 1 -835 2,900 1,050 500 2 -835 3 800 -835 4 300 -835The answers of a-d already existed still need to find the other questions Question A company has a 12% WACC and is considering two mutually exclusive investments (that cannot be repeated) with the following cash flows: Project A -$300 -$387 -$193 -$100 $600 $600 $850 -$180 Project B -$400 $135 $135 $135 $135 $135 $135 $0 a. What is each project's NPV?project A :$200.41project B :$155.04b. What is each project's IRR?project A :18.10%project B :24.83%c. What is each project's MIRR?project A :15.1%project B :17.4% d. From your answers to Parts a, b, and c, which project would be selected?If the WACC was 18%, which project would be selected? Already answerede. Construct NPV profiles for Projects A and Bdiscount rate NPV PLAN B. NPV PLAN B Discount Rate NPV Project A NPV Project B 0% $ $ 5 10 12 15 18.1 24.83 Formula:f. Calculate the crossover rate where the two projects' NPVs are equal.Formula:g. What is each project's MIRR at…
