(Related to Checkpoint 11.1 and Checkpoint 11.4) (IRR and NPV calculation) The cash flows for...

50.1K

Verified Solution

Question

Finance

image

(Related to Checkpoint 11.1 and Checkpoint 11.4) (IRR and NPV calculation) The cash flows for three independent projects are found below: :: a. Calculate the IRR for each of the projects. b. If the discount rate for all three projects is 12 percent, which project or projects would you want to undertake? c. What is the net present value of each of the projects where the appropriate discount rate is 12 percent? i Data Table a. The IRR of Project Ais %. (Round to two decimal places.) The IRR of Project B is %. (Round to two decimal places.) The IRR of Project is %. (Round to two decimal places.) Year O (Initial investment) Year 1 Year 2 Year 3 Year 4 Year 5 b. If the discount rate for all three projects is 12%, which project or projects would you want to undertake? (Seled Project A $(65,000) $11,000 18,000 23,000 26,000 29,000 Project B $(110,000) $29,000 29,000 29,000 29,000 29,000 Project C $(430,000) $250,000 250,000 250,000 O A. None of the projects OB. Project A, Project B, and Project C OC. Project A and Project B OD. Project A and Project C Print Done c. The net present value of Project A where the appropriate discount rate is 12% is $ (Round to the nearest dollar.) The net present value of Project B where the appropriate discount rate is 12% is $ (Round to the nearest dollar.) The net present value of Project C where the appropriate discount rate is 12% is $ (Round to the nearest dollar.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students