## What are the projects’ Np Vs assuming the WACK is 5%?

Your division is considering two projects with the following cash flows (in millions):

 0 1 2 3
 Project A -\$29 \$15 \$13 \$3 Project B -\$16 \$8 \$3 \$6

1. What are the projects’ Np Vs assuming the WACK is 5%? Round your answer to two decimal places. Enter your answer in millions. For example, an answer of \$10,550,000 should be entered as 10.55.

Project A    \$   million

Project B    \$   million

What are the projects’ Np Vs assuming the WACK is 10%? Round your answer to two decimal places. Enter your answer in millions. For example, an answer of \$10,550,000 should be entered as 10.55.

Project A    \$   million

Project B    \$   million

What are the projects’ Np Vs assuming the WACK is 15%? Round your answer to two decimal places. Enter your answer in millions. For example, an answer of \$10,550,000 should be entered as 10.55.

Project A    \$   million

Project B    \$   million

2. What are the projects’ Ir Rs assuming the WACK is 5%? Round your answer to two decimal places.

Project A   %

Project B   %

What are the projects’ Ir Rs assuming the WACC is 10%? Round your answer to two decimal places.

Project A   %

Project B   %

What are the projects’ Ir Rs assuming the WACK is 15%? Round your answer to two decimal places.

Project A   %

Project B   %

3. If the WACK were 5% and A and B were mutually exclusive, which would you choose? (Hint: The crossover rate is 5.9%.)

Pick Project A or B or Neither

If the WACK were 10% and A and B were mutually exclusive, which would you choose? (Hint: The crossover rate is 5.9%.)

Pick Project A or B or Neither

If the WACK were 15% and A and B were mutually exclusive, which would you choose? (Hint: The crossover rate is 5.9%.)

Pick Project A or B or Neither

A company is analyzing two mutually exclusive projects, S and L, with the following cash flows:

 0 1 2 3 4
 Project S -\$1,000 \$884.15 \$260 \$5 \$10 Project L -\$1,000 \$10 \$240 \$400 \$769.20

The company’s WACK is 9.5%. What is the IRE of the better project? (Hint: The better project may or may not be the one with the higher IRE.) Round your answer to two decimal places.

%

Project K costs \$55,801.73, its expected cash inflows are \$12,000 per year for 10 years, and its WACK is 10%. What is the project’s IRE? Round your answer to two decimal places

Capital budgeting criteria: mutually exclusive projects

Project S costs \$19,000 and its expected cash flows would be \$6,500 per year for 5 years. Mutually exclusive Project L costs \$42,500 and its expected cash flows would be \$14,000 per year for 5 years. If both projects have a WACK of 13%, which project would you recommend?

Select the correct answer.

 I. Both Projects S and L, since both projects have IRS’s > 0.
 II. Both Projects S and L, since both projects have NPR’s > 0.
 III. Project S, since the NP’S > NP.
 IV. Neither S or L, since each project’s NOV < 0.

Capital budgeting criteria: mutually exclusive projects

A firm with a WACK of 10% is considering the following mutually exclusive projects:

 0 1 2 3 4 5
 Project A -\$500 \$75 \$75 \$75 \$170 \$170 Project B -\$450 \$350 \$350 \$80 \$80 \$80

Which project would you recommend?

Select the correct answer.

 I. Project B, since the NP VB > NOVA.
 II. Both Projects A and B, since both projects have NPR’s > 0.
 III. Neither A or B, since each project’s NOV < 0.
 IV. Project A, since the NOVA > NP VB.
 V. Both Projects A and B, since both projects have IRS’s > 0. Project K costs \$35,000, its expected cash inflows are \$10,000 per year for 10 years, and its WACK is 14%. What is the project’s NOV? Round your answer to the nearest cent.

 Type of paper Academic level Subject area Essay Term Paper Research Paper Coursework Book Report Book Review Movie Review Dissertation Thesis Thesis Proposal Research Proposal Dissertation Chapter - Abstract Dissertation Chapter - Introduction Chapter Dissertation Chapter - Literature Review Dissertation Chapter - Methodology Dissertation Chapter - Results Dissertation Chapter - Discussion Dissertation Services - Editing Dissertation Services - Proofreading Formatting Admission Services - Admission Essay Admission Services - Scholarship Essay Admission Services - Personal Statement Admission Services - Editing Editing Proofreading Case Study Lab Report Speech Presentation Math Problem Article Article Critique Annotated Bibliography Reaction Paper PowerPoint Presentation Statistics Project Multiple Choice Questions (None-Time-Framed) Other (Not listed) High School Undergraduate Master Ph. D. Art   Architecture   Dance   Design Analysis   Drama   Movies   Music   Paintings   Theatre Biology Business Chemistry Communications and Media   Advertising   Communication Strategies   Journalism   Public Relations Creative writing Economics   Accounting   Case Study   Company Analysis   E-Commerce   Finance   Investment   Logistics   Trade Education   Application Essay   Education Theories   Pedagogy   Teacher's Career Engineering English Ethics History   African-American Studies   American History   Asian Studies   Canadian Studies   East European Studies   Holocaust   Latin-American Studies   Native-American Studies   West European Studies Law   Criminology   Legal Issues Linguistics Literature   American Literature   Antique Literature   Asian Literature   English Literature   Shakespeare Studies Management Marketing Mathematics Medicine and Health   Alternative Medicine   Healthcare   Nursing   Nutrition   Pharmacology   Sport Nature   Agricultural Studies   Anthropology   Astronomy   Environmental Issues   Geography   Geology Philosophy Physics Political Science Psychology Religion and Theology Sociology Technology   Aeronautics   Aviation   Computer Science   Internet   IT Management   Web Design Tourism Number of pages Paper urgency Cost per page: 1 pages/275 words 2 pages/550 words 3 pages/825 words 4 pages/1100 words 5 pages/1375 words 6 pages/1650 words 7 pages/1925 words 8 pages/2200 words 9 pages/2475 words 10 pages/2750 words 11 pages/3025 words 12 pages/3300 words 13 pages/3575 words 14 pages/3850 words 15 pages/4125 words 16 pages/4400 words 17 pages/4675 words 18 pages/4950 words 19 pages/5225 words 20 pages/5500 words 21 pages/5775 words 22 pages/6050 words 23 pages/6325 words 24 pages/6600 words 25 pages/6875 words 26 pages/7150 words 27 pages/7425 words 28 pages/7700 words 29 pages/7975 words 30 pages/8250 words 31 pages/8525 words 32 pages/8800 words 33 pages/9075 words 34 pages/9350 words 35 pages/9625 words 36 pages/9900 words 37 pages/10175 words 38 pages/10450 words 39 pages/10725 words 40 pages/11000 words 41 pages/11275 words 42 pages/11550 words 43 pages/11825 words 44 pages/12100 words 45 pages/12375 words 46 pages/12650 words 47 pages/12925 words 48 pages/13200 words 49 pages/13475 words 50 pages/13750 words 51 pages/14025 words 52 pages/14300 words 53 pages/14575 words 54 pages/14850 words 55 pages/15125 words 56 pages/15400 words 57 pages/15675 words 58 pages/15950 words 59 pages/16225 words 60 pages/16500 words 61 pages/16775 words 62 pages/17050 words 63 pages/17325 words 64 pages/17600 words 65 pages/17875 words 66 pages/18150 words 67 pages/18425 words 68 pages/18700 words 69 pages/18975 words 70 pages/19250 words 71 pages/19525 words 72 pages/19800 words 73 pages/20075 words 74 pages/20350 words 75 pages/20625 words 76 pages/20900 words 77 pages/21175 words 78 pages/21450 words 79 pages/21725 words 80 pages/22000 words 81 pages/22275 words 82 pages/22550 words 83 pages/22825 words 84 pages/23100 words 85 pages/23375 words 86 pages/23650 words 87 pages/23925 words 88 pages/24200 words 89 pages/24475 words 90 pages/24750 words 91 pages/25025 words 92 pages/25300 words 93 pages/25575 words 94 pages/25850 words 95 pages/26125 words 96 pages/26400 words 97 pages/26675 words 98 pages/26950 words 99 pages/27225 words 100 pages/27500 words 101 pages/27775 words 102 pages/28050 words 103 pages/28325 words 104 pages/28600 words 105 pages/28875 words 106 pages/29150 words 107 pages/29425 words 108 pages/29700 words 109 pages/29975 words 110 pages/30250 words 111 pages/30525 words 112 pages/30800 words 113 pages/31075 words 114 pages/31350 words 115 pages/31625 words 116 pages/31900 words 117 pages/32175 words 118 pages/32450 words 119 pages/32725 words 120 pages/33000 words 121 pages/33275 words 122 pages/33550 words 123 pages/33825 words 124 pages/34100 words 125 pages/34375 words 126 pages/34650 words 127 pages/34925 words 128 pages/35200 words 129 pages/35475 words 130 pages/35750 words 131 pages/36025 words 132 pages/36300 words 133 pages/36575 words 134 pages/36850 words 135 pages/37125 words 136 pages/37400 words 137 pages/37675 words 138 pages/37950 words 139 pages/38225 words 140 pages/38500 words 141 pages/38775 words 142 pages/39050 words 143 pages/39325 words 144 pages/39600 words 145 pages/39875 words 146 pages/40150 words 147 pages/40425 words 148 pages/40700 words 149 pages/40975 words 150 pages/41250 words 151 pages/41525 words 152 pages/41800 words 153 pages/42075 words 154 pages/42350 words 155 pages/42625 words 156 pages/42900 words 157 pages/43175 words 158 pages/43450 words 159 pages/43725 words 160 pages/44000 words 161 pages/44275 words 162 pages/44550 words 163 pages/44825 words 164 pages/45100 words 165 pages/45375 words 166 pages/45650 words 167 pages/45925 words 168 pages/46200 words 169 pages/46475 words 170 pages/46750 words 171 pages/47025 words 172 pages/47300 words 173 pages/47575 words 174 pages/47850 words 175 pages/48125 words 176 pages/48400 words 177 pages/48675 words 178 pages/48950 words 179 pages/49225 words 180 pages/49500 words 181 pages/49775 words 182 pages/50050 words 183 pages/50325 words 184 pages/50600 words 185 pages/50875 words 186 pages/51150 words 187 pages/51425 words 188 pages/51700 words 189 pages/51975 words 190 pages/52250 words 191 pages/52525 words 192 pages/52800 words 193 pages/53075 words 194 pages/53350 words 195 pages/53625 words 196 pages/53900 words 197 pages/54175 words 198 pages/54450 words 199 pages/54725 words 200 pages/55000 words 30 days 6 hours 12 hours 24 hours 48 hours 3 days 4 days 5 days 7 days 10 days 20 days USD GBP CAD AUD EUR  Total: