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Goshia [24]
2 years ago
12

Your+required+return+is+14%. +should+you+accept+a+project+with+the+following+cash+flows

Mathematics
1 answer:
PtichkaEL [24]2 years ago
6 0

By using an excel spreadsheet and IRR function, the cross over rate = 14.85%

Year           Cash Flow (A)           Cash Flow (B)

0                    -58,000                   -58,000

1                      34,000                     21,200

2                     28,000                     25,200

3                     20,000                     30,000

4                      13,600                     25,200

<h3>What is the IRR for each of these projects?</h3>

using an excel spreadsheet and the IRR function:

Project A's IRR = 28.3%

Project B's IRR = 25.7%

(b) If you apply the IRR decision rule, which project should the company accept?

Project A (its IRR is higher)

Requirement 2:

(a) Assume the required return is 14 percent. What is the NPV for each of these projects?

using an excel spreadsheet and the NPV function:

Project A's NPV = $14,921.37

Project B's NPV = $15,156.64

(b) Which project will you choose if you apply the NPV decision rule?

Project B (its NPV is higher)

Requirement 3:

(a) Over what range of discount rates would you choose Project A?

higher than 14.85%

(b) Over what range of discount rates would you choose Project B?

lower than 14.85%

(c) At what discount rate would you be indifferent between these two projects?

crossover rate calculation

Year           Cash Flow (A)           Cash Flow (B)       differential amount

0                    -58,000                   -58,000                       $0

1                      34,000                     21,200                     $12,800

2                     28,000                     25,200                     $2,800

3                     20,000                     30,000                  -$10,000

4                      13,600                     25,200                   -$11,600

using an excel spreadsheet and IRR function, the cross over rate = 14.85%

To know more about IRR function follow

brainly.com/question/24765495

#SPJ4

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20 POINTS!!!
choli [55]

Hello from MrBillDoesMath!

Answer:

x = 0, 7

Discussion:

f(g(x)) =

f ( x^2-7x) =

1/ ( x^2 - 7x)


The points NOT in the domain are those where the denominator,  x^2 - 7x = 0.

x^2 - 7x   = 0       =>       factor x from each term

x(x-7) = 0            =>        one or both terms must each 0

x = 0 or x =7


Thank you,

MrB


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