1.) What is the NPV for each project? Select one: a. Project 1: $15,504 Project
ID: 1095314 • Letter: 1
Question
1.) What is the NPV for each project?
Select one:
a. Project 1: $15,504 Project 2: $13,640 Project 3: $11,560
b. Project 1: $17,504 Project 2: $10,640 Project 3: $12,560
c. Project 1: $17,209 Project 2: $6,642 Project 3: $16,287
d. Project 1: $22,209 Project 2: $8,642 Project 3: $14,287
2.) What is the EUAW for each project?
Select one:
a. Project 1: $4,520 Project 2: $1,594 Project 3: $2,560
b. Project 1: $2,450 Project 2: $2,358 Project 3: $3,256
c. Project 1: $3,310 Project 2: $1,288 Project 3: $2,129
d. Project 1: $2,784 Project 2: $1752 Project 3: $1864
3.)What is IRR for each project?
Select one:
a.
Project 1: 0.1852 Project 2: 0.1457 Project 3: 0.1536
b.
Project 1: 0.2732 Project 2: 0.1123 Project 3: 0.2431
c.
Project 1: 0.2093 Project 2: 0.1609 Project 3: 0.2230
d.
Project 1: 0.1920 Project 2: 0.1342 Project 3: 0.2531
4.)What is MIRR for each Project?
Select one:
a.
Project 1: 0.1370 Project 2: 0.1195 Project 3: 0.1547
b.
Project 1: 0.1753 Project 2: 0.2240 Project 3: 0.0954
c.
Project 1: 0.0823 Project 2: 0.0642 Project 3: 0.0758
d.
Project 1: 0.1852 Project 2: 0.2242 Project 3: 0.1865
5.)What is benefit cost ratio?
Select one:
a. Project 1: 1.673 Project 2: 1.432 Project 3: 1.952
b. Project 1: 2.643 Project 2: 0.932 Project 3: 0.957
c. Project 1: 0.8562 Project 2: 0.5624 Project 3: 0.8247
d. Project 1: 0.6780 Project 2: 0.4653 Project 3: 0.4982
6.)What is payback preiod for each project?
Select one:
a.
Project 1: 5.24 Project 2: 2.54 Project 3: 4.60
b.
Project 1: 4.01 Project 2: 4.69 Project 3: 3.44
c.
Project 1: 2.03 Project 2: 3.64 Project 3: 4.34
d.
Project 1: 5.03 Project 2: 6.23 Project 3: 4.35
7.) What is Future worth or terminal value for each project.
Select one:
a.
Project 1: $47,948 Project 2: $18,658 Project 3: $30,845
b.
Project 1: $42,362 Project 2: $23,537 Project 3: $26.452
c.
Project 1: $42,350 Project 2: $28,623 Project 3: $33,520
d.
Project 1: $55,435 Project 2: $28,293 Project 3: $27,561
Explanation / Answer
Project 1: $22,209 Project 2: $8,642 Project 3: $14,287
2. EUAW of Project 1 = P[i(1+i)^n]/[(1+i)^n - 1]= 22209.19*(8%*1.08^10)/(1.08^10-1) = 3,310
Project 1: $3,310 Project 2: $1,288 Project 3: $2,129
3. For IRR, NPV =0
For Project 1
= -33000 + (14000-6000)*(1-1/(1+IRR)^10)/IRR% + 3300/(1+IRR)^10=0
IRR = 0.2093
Project 1: 0.2093 Project 2: 0.1609 Project 3: 0.2230
4. The formula for MIRR is:
MIRR for Project 1 = ((((14000-6000)*(1-1/1.08^10)/8% + 3300/1.08^10)*1.08^10)/33000)^(1/10)-1= 0.1370
Project 1: 0.1370 Project 2: 0.1195 Project 3: 0.1547
5. Benefit to cost ratio of Project 1= ((14000-6000)*(1-1/1.08^10)/8% + 3300/1.08^10)/33000= 1.673
Project 1: 1.673 Project 2: 1.432 Project 3: 1.952
6. Payback period of Project 1 = 4 + (33000-4*8000)/8000= 4.01
Project 1: 4.01 Project 2: 4.69 Project 3: 3.44
7. Future worth of Project 1 = NPV*(1+i)^n = 22209*1.08^10=47948
Project 1: $47,948 Project 2: $18,658 Project 3: $30,845
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