Which type project is one whose acceptance or rejection does not directly eliminate other projects from consideration. O capital budgeting project O mutually exclusive project O contingent project O ndependent project None of the listed selections is correct
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- Use attachment to answer question q1- This question relates to the diagram, which shows the NPV profile for Projects X and Y. Assume Projects X and Y and mutually exclusive, discretionary projects. For what range of costs of capital should Project X be accepted? Select one: a. Greater than 9% b. Between 4% and 13% c. Greater than 13% d. Greater than 4%NPV & IRR Refer to the scenario above. The project(s) you select may vary depending on the WACC and whether the projects are independent or mutually exclusive. Which statement is INCORRECT? If the projects are independent and the WACC is 11.0%, both projects A and B are acceptable. If the projects are independent, Project A would be acceptable if the WACC is 17%, but Project B would not. If a project's NPV is negative, the project cannot be accepted. If the projects are mutually exclusive and the WACC is 11.0%, only project B is acceptable. If the projects are mutually exclusive and the WACC is 6.0%, only project B is acceptable.A Moving to another question will save this response. Question 6 What of the following is a drawback of using the payback method to evaluate capital projects? O Payback can result in value-decreasing decisions O Payback does not consider the time value of money O Payback does not consider risk O Payback does not consider all the cash flows of the project O All choices are correct A Moving to another question will save this response. MacBook Air 딤 F3 esc F2 - FS # $ & * 4 7 8 Q W R Y F C V elt option command D. S]
- A financial analyst is evaluating the following projects, which are mutually exclusive, meaning that only one of them can be chosen. Based on financial theory and the NPV criterion, which one of these projects should be chosen over the other three? Time A C D -26,000 -7,200 -14,500 -19,600 8,100 11,900 8,100 2,360 8.600 1,150 10,000 2,120 5,700 800 11,100 11,00O0 4,200 850 1,130 9,800 12,480 9,700 830 11,600 Discount 13.9% 13.9% 13.9% 13.9% Rate O Project A O Project B O Project C O Project D O12 345Bausch Company is presented with the following two mutually exclusive projects. The required return for both projects is 13 percent. Year 01234+ Project M -$144,000 63,100 81,100 72,100 58,100 Project N -$351,000 154,500 176,000 139,500 106,000Use attachment to answer question q4- This question relates to the Quiz 6.3 diagram, which shows the NPV profile for Projects X and Y. For what range of costs of capital is the NPV of both projects negative? Select one: a. Greater than 9% b. Between 9% and 13% c. Less than 4% d. Greater than 13%
- NPV and IRR Analysis Cummings Products Company is considering two mutually exclusive investments whose expected net cash flows are as follows: EXPECTED NET CASH FLOWS Year Project A Project B -$340 -$630 -528 210 -219 210 3 -150 210 1,100 210 820 210 990 210 -325 210 a. Construct NPV profiles for Projects A and B. Select the correct graph. A B VPVS) 1400 VPV(S) VPV(S) 1400 1400- 1200 1200- 1200- 1000 1000 1000 800 Project B 800- Project A 800 Project A 600 600- 600 400 400- Project A Project B 400 200 200 Project B 200 Cost of capiar5 20 -5 30 -5 5 +++ 10 20 25 30 -5 15 Cost of cntal% -200 Cost of capital %) 20 25 30 -200 -200 -400 -4001 -400I D VPVS) TUse attachment to answer question q4- This question relates to the diagram, which shows the NPV profile for Projects X and Y. For what range of costs of capital is the NPV of both projects negative? Select one: a. Between 9% and 13% b. Less than 4% c. Greater than 13% d. Greater than 9%QUESTIONS Consider the following payoff Table The State of Nature Decision Alternative 0.82 1-0.82- 51 $₂ D1 5 8 0₂ 5 9 D₂ 14 4 What is the payoff value for the D2 under $2 should be to keep the optimal solution always optimal? Do not writ the sign > or <) (Round your answer to 2 decimal places)
- Questlon Completion Status: What are the cases in which the IRR and NPV might not give the same answer? In other words when is the IRR unreliable? i. Mutually Exclusive Projects ii. When the NPV is equal to 0 ii. Non-Conventional Cash Flows iv. Independent Projects Oi and ii only O ii and iv only Oi and ii only Oi, ii, and ii O all of the above QUESTION 13 Click Save and Submit to save and submit. Click Save All Answers to save all answers.Compute the Profitability Index (PI) for each project? Project A Project B Profitability Index (PI) 5- In light of your answers above, suppose that these two projects might be mutually exclusive or independent. According to these two assumptions, fill in the blanks in the table below with the suitable answer: Points Investment Criteria If A and B are mutually exclusive, then I would select If A and B are independent, then I would select PBP NPV IRR PIThe blue curve (labeled "L") depicts the NPV for a project with larger cash flows later of -$1,000, $100, $300, $400, and $675. The red curve (labeled "S") depicts the NPV for a project with larger cash flows sooner of -$1,000, $500, $400, $300, and $100. Drag on the graph either left or right to change the cost of capital interest rate at which the NPV is evaluated for the two projects. NPV ($) 500- 400 300 200- 100.40100- 78.82 0 -100- Project S: NPV = CF₁+N CF₁ -=1 (1+r) N CF₂ Project L: NPV = CF₁ + Σ = 1 (1+r) ² + ΣΜ = = -S1, 000 + ² L ¡=-$1,000+ S 15 $500 $400 $300 $100 (1+0.1000)¹ (1+0.1000)² (1+0.1000)³ (1+0.1000)* 20 + Cost of Capital (%) $100 $300 $400 $675 (1+0.1000)¹ (1+0.1000) (1+0.1000)³ (1+0.1000)* + + + + + = $78.82 = $100.40