60.1K

Verified Solution

Link Copied!

Please answer b,c and d

I already solve a

please answer fast.

FIN 203-2199-86083 Rigene Lumaj 11/7/1993 Homework: FL 7 Score: 1.8 of 2 pts 3 of 5 (5 complete) HW Score: 98%, 9.8 a P10-21 (similar to) Question Hels All techniques, conflicting rankinge Nicholson Roofing Materials, Inc., is considering two mutually exclusive projects, each with an initial investment of $110,000. The company's board of directors has set a payback requirement and has set its cost of capital at 9%. The cash inflows associated with the two projects are shown in the following table: a. Calculate the payback period for each project. Rank the projects by payback period. b. Calculate the NPV of each project Rank the project by NPV. e. Calculate the IRR of each project. Rark the project by IRR d. Make a recommendation a. The payback period of project Ais 3.14 years. (Round to two decimal places) Data Table (Click on the con located on the top right comer of the datatable below in order to copy contents into a spreadsheet) The payback period of project Dis 18 years. (Round to two decimal places) According to the payback method, which project should the firm choose? (Select the best answer below) Year DA Project A Project B Cash inflows (CF) Project A Project B $35,000 $75,000 $35,000 $80,000 $35.000 $10.000 $35.000 $10,000 $35,000 $10.000 $35.000 $10.000 b. The NPV of project Ass (Round to the nearest cent) Enter your answer in the answer box and then click Check Answer 6 Marts O remaining Print Done . NO

Answer & Explanation Solved by verified expert

See Answer