2. NET firm is trying to decide between five mutually exclusive one- year projects. Project 1 Project 2 Project 3 Project 4 Project 5 Return Probability of return occurring 16 20 -16 36 48 -8 16 24 -40 0 100 1.0 1.0 0.25 0.50 0.25 0.25 0.50 0.25 0.10 0.60 0.30 Remember to regularly save your work Sheet 8 of 10 Module Code: ACF15084 Please work out the likely outcome for each project and discuss whether you can make informed decision according to this.
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- Module 02 Written Assiqnment Application of Future Value and Present Value.xlsx - OpenOffice Calc File Edit View Insert Format Iools Data Window Help ABC 《 的, ABC Verdana 10 В I U 三 開 % 0 □ A B G H I 1. Assume an investment of $2,000 today. Calculate the FV of the investment according to eac 6. 7 a. 6 percent compounded annually 8 9. Rate 6% 10 Nper PMT 12 11 12 PV $2,000.00 $0.00 13 FV 14 15 b. 8 percent compounded annually 16 17 Rate 8% 18 Nper 12 19 PMT 20 PV $2,000.00 21 FV 22 23 c. 10 percent compounded annually 24 25 Rate 10% 26 Nper 12 27 PMT 28 PV $2,000.00 29 FV 30 31 d. 10 percent compounded semiannually 32 Rate K Future Value Present Value 33 10% STD Sheet 1/2 PageStyle Future Value2. Use the worksheet tab Problem 2 A-FV Retirement and Problem 2 B -PV Invest K File 6 7 ñ Paste K11 16 17 18 Book1 - Excel Clipboard Home Insert Calibri X Dr- Ready B I U 89- Draw Page Layout Formulas Data Review View == 28 M =100- Font 2 Return Rate 3 Investment Duration in Years 4 Amount Invested Future Investment Value fx One-Time Investment Scena Return Rate 9Investment Duration in Years 10 Monthly Payroll Deduction 11 Company Match 12 Monthly Investment 13 Current Balance 14 Future Investment Value 15 Sheet1 11 A A A- Retirement Plan Scenario Sheet2 Accessibility: Investigate D O AI 19 9 Return Rate = 5.500% 13 7500 Alignment 4.500% 35 500 50% 750 $10,000.00 19 D O Search General - $ % 9 68 28 Number Automate Help Acrobat Conditional Formatting W Format as Table Cell Styles - Styles Goal seek Future Savings Value at $20,000 Future Savings Value at $25,000 Insert Delete Format - Cells G O dating FS Sensitivity Retirement plan Goal Seek Solution by changing Return Rate-Goal seek…Exercice 2. You must choose one of these projects. Which one do you chose and why? [5] Year 1 IRR NPV PI Project A Project B -50 80 60% 14 0.28 -120 180 50% 24 0.20
- 6) Year Project A Project B Difference 0 -75000 -75000 0 1 26300 24000 2300 2 29500 26900 2600 3 45300 51300 -6000 Crossover rate 14.60% Hi I need help with the following question! Thank you! Are you going to accept project A or project B? Why?MyUSF My Home 4 CengageNOWv2 | Online teachin X + ngagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inpro.. to Determine the average rate of return for a project that is estimated to yield total income of $270,400 over 4 years, costs $615,000, and has a $61,000 residual value.Home Insert Draw Design Layout Mail ngs Review View Help A Paste Font Paragraph Styles Editing Dictate Editor Reuse Files do Clipboard N Styles S Voice Reuse Files Editor Problem Initial investment (II) = $6,500, TPP = 2.5 years, required rate of return (r) = 8% Year Operating cash flow 1 2,000 4,000 3 3,000 1. How much is payback period (PP)? Should the project be accepted or rejected? 2. How much is discounted payback period (DPP)? Should the project be accepted or rejected? 3. How much is net present value (NPV)? Should the project be accepted or rejected? 4. How much is internal rate of return (IRR)? Should the project be accepted or rejected? 5. How much is modified internal rate of return (MIRR)? Should the project be accepted or rejected? 5 736 words English (United States) O Focus 7:38 PM 4/13/2022
- x E My Home CengageNOWv2 |Online teachir x+ now.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inpro. ta o 伯 Determine the average rate of return for a project that is estimated to yield total income of $250,000 over 4 years, costs $480,000, and has a $20,000 residual value. Next Previous Submit Test for GradingMYUSF x|困 My Home CengageNOWv2 |Online teachin X gagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inpro... 844 A project has estimated annual net cash flows of $66,600. It is estimated to cost $466,200. Determine the cash payback period. Round the answer to one decimal place. years Chapter 26 TAKE HOME EXAM Content Area3. Problem 11.03 (MIRR) eBook Problem Walk-Through Project L requires an initial outlay at t = 0 of $55,000, its expected cash inflows are $13,000 per year for 9 years, and its WACC is 9%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places. BE %
- 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 0Q6. A. Define break even analysis. B. Calculate NPV and IRR from data given below Project B $50000 II Year 1 2 3 4 5 Project A $50000 7000 4000 9000 15000 15000 10000 10000 10000 10000 10000dOfice eBook A firm with a WACC of 10% is considering the following mutually exclusive projects: 1 2 3 4 5 Project 1 -$200 $80 $80 $80 $215 $215 Project 2 -$600 $200 $200 $135 $135 $135 Which project would you recommend? Select the correct answer. Oa. Project 2, since the NPV2 > NPV1. Ob. Both Projects 1 and 2, since both projects have NPV's > 0. Oc. Both Projects 1 and 2, since both projects have IRR's > 0. Od. Project 1, since the NPV1 > NPV2. Oe. Neither Project 1 nor 2, since each project's NPV < 0.