70.2K
Verified Solution
Link Copied!
1) I need to find the answer by typing in formula in excel spreadsheet, can't just type in the answer need formula.
A firm is evaluating the following project. What is the IRR of the project?
year 0 (28,000)
year 1 $12,000
year 2 $15,000
year 3 $11,000
4)
| Mahjong, Inc., has identified the following two mutually exclusive projects: |
| Year | Cash Flow (A) | Cash Flow (B) |
| 0 | $36,900 | $36,900 |
| 1 | 19,260 | 6,760 |
| 2 | 14,760 | 13,260 |
| 3 | 12,260 | 19,760 |
| 4 | 9,260 | 23,760 |
| |
| (a) | What is the IRR for Project A? |
| | |
| | (Click to select)22.64%22.21%20.91%21.56%20.48% |
| (b) | What is the IRR for Project B? |
| | |
| | (Click to select)19.93%21.61%20.35%20.98%22.03% |
| (c) | If the required return is 15 percent, what is the NPV for Project A? |
| | |
| | (Click to select)$4,145.89$4,233.17$4,364.09$4,495.01$4,582.29 |
| (d) | If the required return is 15 percent, what is the NPV for Project B? |
| | |
| | (Click to select)$5,414.64$5,749.56$5,582.1$5,303$5,861.21 |
| (e) | At what discount rate would the company be indifferent between these two projects? |
| | |
| | (Click to select)19.48%20.06%18.9%20.45%18.51% |
Answer & Explanation
Solved by verified expert
