Find the Discounted Payback period for the following project. The discount rate is 6% round 2 dec Project X $8,711 $3,760 $3,635 $5,782 $6,748 Initial Outlay Year 1 Year 2 Year 3 Year 4
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- Estimate the MIRR of the following project considering a 12% discount rate Year CF -1,200 500 600 -907 1,000 1,200 Select one: a. 19% b. 24% C. 22% d. 20% N 3 4 5Use Payback analysis at 15% to select a system for the following system System 1 system 2 First cost $ 15,000 13,000 2.000 (Year 1 -5) NCF, $ per year 3,000 3,000 (year 6- 14) Maximum 14 life years Find the no-return payback for system one A.5 Years v Find the no-return payback for system two? B. 6 years v Which system has the better payback period? C. system 1 v which system has longer payback period? D. system 2 E. 4 years F. 7 yearsTwo alternatives are being considered for a certain project. B $15,000 $3,800 Initial Cost Uniform annual benefits Useful life A $10,000 $2,500 O a. 1.37 O b. 1.27 O c. 1.07 O d. 1.17 6 6 If money is worth 12% annually, compute the benefit ratio of the difference between the alternatives.
- EXERCISE 2. Compare the projects below using the NPV, PP,PI. The discount rate is 20%. Project 1 A B C 0 -370 -240 -263,5 60 100 -20000 -25000 2 60 100 7000 2500 3 1 60 100 EXERCISE 3. Compare the projects below using the NPV, PP,PI. The discount rate is 13%. Project 0 A B 7000 5000 4 2 60 100 3 5 7000 10000 60 100 6 1000 60 100 4 7000 20000Question 9-43 A project has the following costs and benefits. What is the payback period? Year Costs Benefits 0 $65,000 1-2 15,000 3 5,000 $50,000 4-10 $10,000 in each year#3 HE Year Project A Project B 0 -$20,000 -$23,000 1 2 3 15,200 5,900 2,100 14,300 8.100 7,100 Suppose the company uses the NPV rule to rank these two projects. Which project should be chosen if the appropriate discount rate is 15 percent?
- Activity 7.3. QUIZ Answer the following questions: Year Project Pizza 1. (100,000) 1 50,000 50,000 a. Given the cash flows above and a discount rate of 5%, compute the payback period and NPV of Project Pizza. b. If PHP50,000 is earned on the 3rd year of the project, what is the new NPV of the project? What is the payback period?id 1 :uonsenn siu i 29 o Consider the following two projects: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Discount Project C/F Alpha C/F C/F C/F C/F C/F C/F C/F Rate -79 20 25 30 35 40 N/A N/A 12% Beta - 80 25 25 25 25 25 25 25 13% The net present value (NPV) for project alpha is closest to: A. $31 B. $25 OC. $21 D. $38 Click to select your answer. MacE esc D00 O O O 0plan A plan B plan C Down payment 15,777 28,458 16,632 Annual payments 27,556 10,207 25,948 Years 20 20 20 Discount rate 11% 11% 11% What is the present value of plan A?
- NPV profiles WACC (Dollars in Millions) Plan A Plan B Project NPV Calculations: NPVA NPVB Project IRR Calculations: IRRA IRRB NPV Profiles: Discount Rates 0% 5% 10% 15% 20% 22% 25% 11.00% NPVA $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 0 -$40.00 Formulas #N/A #N/A -$11.00 $2.47 $2.47 $2.47 #N/A #N/A NPVB 1 $6.39 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 2 3 $6.39 $6.39 4 $6.39 $2.47 5 6 7 $6.39 $6.39 $6.39 $2.47 $2.47 8 9 $6.39 $6.39 $2.47 $2.47 $2.47 10 $6.39 $2.47 11 $6.39 12 $6.39 13 $6.39 $2.47 $2.47 $2.47 14 $6.39 15 $6.39 $2.47 $2.47 16 $6.39 $6.39 $2.47 17 39 $2.476. Problem 10-06 (Discounted Payback) eBook Discounted Payback A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 7 years, and a cost of capital of 11%. What is the project's discounted payback period? (Hint: Begin by constructing a time line.) Do not round intermediate calculations. Round your answer to two decimal places. yearsYear 20 20 55 30 20 30 20 25 20 65 75 Project A Project The discount rate is 10%. Answer the following questions (you HAVE TO WRITE your final calculations on the side of each question anser IN ADDITION you will need to submit your excel sheet immediately after you finish. a. Calculate the NPV, BCR, and IRR for both projects. b. Write a paragraph with your conclusion in part (a), if both projects wore Independent and if they were mutually exclusive. 15 15 15