1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nonamiya [84]
2 years ago
15

CAPITAL BUDGETING CRITERIA Your division is considering two projects. It’s WACC is 10%, and the projects’ after-tax cash flows (

in millions of dollars) would be as follows; ______ 0__1__2___3__4___Pro A -$30 $5 $10 $15 $20Pro B -$30 $20 $10 $8 $6a) Calculate the projects’ NPVs, IRRs, MIRRs, regular paybacks and discounted paybacks.b) If the two projects are independent, which project(s) should be chosen?c) if the two projects are mutually exclusive and the WACC is 10%, which project(s) should be chosen?d) Plot NVP profiles for the two projects. Identify the projects IRRs on the graph.e) If the WACC were 5% would this change your recommendation if the projects were mutually exclusive? If WACC were 15%, would this change your recommendation? Explain your answers.f) The crossover rate is 13.5252%. Explain what this rate is and how it affects the choice between mutually exclusive projects?g) Is it possible for conflicts to exist between the NPV and IRR when independent projects are being evaluated? Explain your answer.h) Now look at the regular and discounted paybacks. Which projects look better when judged by the paybacks?
Business
1 answer:
Reil [10]2 years ago
3 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

Download xlsx
You might be interested in
Rick Alexander is a master builder who spent three decades running a successful home-restoration business in Connecticut. When h
enyata [817]

Answer:

a. Employed

(As he have a job)

b. Unemployed

(As he doesn't have a job but is looking for one)

c. not in labor force

(He neither have a job nor is looking for a job, so he is not a part of labor force)

d. Unemployed

(As he is looking fir a job)

e. Employed

(As he is working)

7 0
3 years ago
Further From Center has 12,100 shares of common stock outstanding at a price of $55 per share. It also has 310 shares of preferr
Molodets [167]

Answer:

Market value of common stocks = 12,100 x $55 = $665,500

Market value of preferred stock = 310 x $91       = $28,210

Market value of bonds                = 370 x $2,230 = $825,100

Market value of the company                                   $1,518,810

Capital structure weight of preferred stocks

= $28,210/$1,518,810

= 0.0186

The correct answer is A

Explanation:

In this question, we need to calculate the market value of the company, which is the aggregate of market value of equity, market value of preferred stocks and market value of bond. The capital structure weight of preferred stock is the ratio of market value of preferred stock to market value of the company.

3 0
3 years ago
What are parts of wind turbine that capture wind energy
Natalka [10]
The turbine catches the winds energy by their propeller like blades that compresses and makes it go downward
4 0
2 years ago
Read 2 more answers
A company requisitioned $40,000 in direct materials and $30,000 in indirect materials from the storeroom to be used in productio
UNO [17]
5 btgffttghggddyffgggggghhvvguuj
4 0
2 years ago
An increase in the demand for movies also increases the salaries of actors and actresses. Is the​ long-run supply curve for movi
olchik [2.2K]

Answer:

Upward sloping because increases in output raise input prices.

Explanation:

If an increase in the demand for movies also increases the salaries of actors and​ actresses, then the​ long-run supply curve for movies is likely to be upward sloping because increases in output raise input prices.

4 0
2 years ago
Other questions:
  • The Shoal Company's manufacturing costs for the third quarter of 2019 were as follows: (CPA adapted) Direct materials and direct
    6·1 answer
  • A company's strategy is a "work in progress" and evolves over time because of the Select one: a. frequent need to modify key ele
    14·1 answer
  • Whiplash Ltd. makes a single product and only one type of direct material is used to make this product. Whiplash uses a standard
    14·2 answers
  • Your manager, Felix Young, wants to know why your estimate of the time it will take to get an MRP system up and running is so lo
    9·1 answer
  • At a large department store, the number of years of employment for a cashier is a normally distributed variable with a mean of 5
    7·1 answer
  • Important business data that is not known to the public is considered what type of information?
    9·1 answer
  • Characteristics of a good negotiater​
    10·1 answer
  • 1 point
    5·1 answer
  • When a taxpayer rents a residence for part of the year, the residence is not eligible as a qualified residence for the home mort
    15·1 answer
  • according to age-earnings data, group of answer choices high earnings are due to motivation and innate ability, rather than educ
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!