50%4Normal textLato-+2212BIUAQ1) What is the IRR of Project B if the outlay is $13,000 and the after-tax cash inflows foryears one through four are: $4,700, $3,600, $3,000, and $4,800?9.11%10.9010.01ment will9.2110.90.Q2) What is the NPV of Project B?$172.53349.81-325.59-245.59-349.8703) The payback period of Project B is:Group of answer choices2.8 years3.3 years3.6 years3.35 years2.9 years.471aICSeS71FIO

the internal rate of return of project b,

Answered: 50% 4 Normal text Lato - + 22 12 B IUA…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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4
Normal text
Lato
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B
IUA
Q1) What is the IRR of Project B if the outlay is $13,000 and the after-tax cash inflows for
years one through four are: $4,700, $3,600, $3,000, and $4,800?
9.11%
10.90
10.01
ment will
9.21
10.90.
Q2) What is the NPV of Project B?
$172.53
349.81
-325.59
-245.59
-349.87
03) The payback period of Project B is:
Group of answer choices
2.8 years
3.3 years
3.6 years
3.35 years
2.9 years.
47
1
a
I
C
S
e
S
71
FIO

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What is the project's MIRR? r = 10.00% 0 Year Cash flows O a. 22.51% O b. 11.75% O c. 17.21% O d. 14.81% O e. 15.65% -$875 1 $300 2 $320 3 $340 $360
Consider two mutually exclusive investment alternatives given in the table below. Click the icon to view the cash flows for the projects. (a) Determine the IRR on the incremental investment in the amount of $5,000. (Assume that MARR = 11%.) The rate of return on the incremental investment is%. (Round to two decimal places.)
The following are the cash flows of two projects: Project B Year Project A 0 $ (235) $ (235) 115 135 115 135 115 135 115 1234O 1 2 3 4 What are the internal rates of return on projects A and B? Note: Enter your answers as a percent rounded to 2 decimal places. Project A B IRR % %
EA16. LO 11.4 Project B cost $5,000 and will generate after-tax net cash inflows of $500 in year one, $1,200 in year two, $2,000 in year three, $2,500 in year four, and $2,000 in year five. What is the NPV using 8% as the discount rate?
Question 8 What is the IRR of Project B if the outlay is $13,000 and the after-tax cash inflows for years one through four are: $4,700, $3,600, $3,000, and $4,800? 9.11% O 10.90 O 10.01 09.21 10.80. Question 9 What is the NPV of Project B? $172.53 349.81 0-325.59 O-245.59 O-349.87 1p 1 p
50% Normal text Lato 12 22 ament will Q1)What is the IRR of Project Cif the outlay is $225,000 and the after-tax cash inflows for years one through four are: $45,000, $70,000, $80,000, and $105,000? 13.21% 12.90 11.00 11.90 13.53. Q2) What is the NPV of Project C? $4,274.96 1,138.33 3,891.33 2.884.34 2.638.33. Q3) The payback period of Project C. is 3.29 years 2.8 years 40 years 3.7 years 2.9 years. 47 77 a I 4+ BIUA لسلي 74 74 210
Question 10 What is the IRR of Project C if the outlay is $225,000 and the after-tax cash inflows for years one through four are: $45,000, $70,000, $80,000, and $105,000? O 13.21% O 12.90 11.00 11.80 O 13.53. Question 11 What is the NPV of Project C? O $4.274.96 1.138.33 O 3.891.33 O2,884.34 2.638.33. 1 pt 1 pts
Mf2. Your firm is considering choosing either Project X or Project Y with the following cash flows: Year: 0. 1 2 3 4 Project X -$150,000 $75,000. $65,000 55,000 $45,000 Project Y -$180,000 $90,000. $70,000 $70,000 $50,000 Between a discount rate of ______ and ______ you can be sure your firm should prefer Project Y to Project X. a. 0%; 14.16% b. 0%; 10.25% c.14.16%; 24.26% d10.25; 22.63% e. 0%; 25%
Q4. Your project has following Cashflows: Time Cashflow 0 B).19.14% C).21.08% D).21.68% 1 -25,000.00 5,000.00 35,000.00 The reinvestment rate is 10% and refinancing rate is 15%. What is MIRR?.. A).19.73% 2 10,000.00 3 - 5,000.00 4
6. IRR (S5.3) a. Calculate the net present value of the following project for discount rates of 0, 50, and 100%: Cash Flows ($) C1 Co -6,750 b. What is the IRR of the project? +4,500 C₂ +18,000 Page 141
Question 6 What is the IRR of Project A if the outlay is $6,600 and the annual after-tax cash inflows are $2000 for four years? 8.16% 9.16 10.26 12.17 10.12 Question 7 What is the NPV of Project A? $635.49 0345.09 325.59 32550
What is the minimum cash flow you could receive in year 4 that would make the project acceptable at a discount rate of 12%? Answer to 2 decimal places, for example 934.57. Year Cash Flow 0 $-32,000 1 $12,000 2 $14,000 3 $8,000 4 ? 5 $3,000

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