1. An investment project has annual cash inflows of $4,300, $4,000, $5,200, and $4,400, and a discount rate of 13 percent. What is the discounted payback period for these cash flows if the initial cost is $5,800? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Discounted payback period years What is the discounted payback period for these cash flows if the initial cost is $7,900? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Discounted payback period years What is the discounted payback period for these cash flows if the initial cost is $10,900? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Discounted payback period years 2. Stone Sour, Inc., has a project with the following cash flows: Year Cash Flow0 –$ 27,900 1 11,900 2 14,900 3 10,900 ________________________________________ The required return is 18 percent. What is the IRR for this project? (Do not round intermediate calculations and round your answer to 2 decimal places. (e.g., 32.16)) IRR % 3. Bill plans to open a self-serve grooming center in a storefront. The grooming equipment will cost $480,000, to be paid immediately. Bill expects aftertax cash inflows of $103,000 annually for eight years, after which he plans to scrap the equipment and retire to the beaches of Nevis. The first cash inflow occurs at the end of the first year. Assume the required return is 13 percent. What is the project’s PI? (Do not round intermediate calculations. Round your answer to 3 decimal places. (e.g., 32.161)) PI 3. Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation (BRC). Both projects require an annual return of 17 percent. Year Deepwater Fishing New Submarine Ride0 −$ 1,000,000 −$ 1,950,000 1 420,000 1,000,000 2 550,000 850,000 3 470,000 850,000 ________________________________________ a-1. Compute the IRR for both projects. (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) IRR Deepwater Fishing % Submarine Ride % ________________________________________ b-1. Calculate the incremental IRR for the cash flows. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) Incremental IRR % Answer: 17.15c-1. Compute the NPV for both projects.(Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) NPV Deepwater Fishing $ Submarine Ride $ ________________________________________4. The Robb Computer Corporation is trying to choose between the following two mutually exclusive design projects:Year Cash Flow (I) Cash Flow (II)0 –$ 54,000 –$ 19,000 1 41,000 10,200 2 41,000 10,200 3 41,000 10,200 ________________________________________ a-1. If the required return is 11 percent, what is the profitability index for each project? (Do not round intermediate calculations. Round your answers to 3 decimal places. (e.g., 32.161)) Profitability Index Project I Project II ________________________________________b-1. What is the NPV for each project? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) NPV Project I $ Project II $ ________________________________________5. Mario Brothers, a game manufacturer, has a new idea for an adventure game. It can market the game either as a traditional board game or as an interactive DVD, but not both. Consider the following cash flows of the two mutually exclusive projects for Mario Brothers. Assume the discount rate for Mario Brothers is 10 percent. Year Board Game DVD0 –$ 1,600 –$ 3,500 1 770 2,150 2 1,350 1,650 3 290 1,200 ________________________________________ a. What is the payback period for each project? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) Payback period Board game DVD ________________________________________b. What is the NPV for each project? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) NPV Board game $ DVD $ ________________________________________c. What is the IRR for each project? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) IRR Board game % DVD % ________________________________________d. What is the incremental IRR? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Incremental IRR % 6. Consider the following cash flows of two mutually exclusive projects for Tokyo Rubber Company. Assume the discount rate for Tokyo Rubber Company is 8 percent.Year Dry Prepreg Solvent Prepreg0 –$ 1,840,000 –$ 820,000 1 1,114,000 445,000 2 928,000 740,000 3 764,000 418,000 ________________________________________ a. What is the payback period for both projects? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) Payback period Dry Prepeg years Solvent Prepeg years ________________________________________ b. What is the NPV for both projects? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) NPV Dry Prepeg $ Solvent Prepeg $ _______________________________________ c. What is the IRR for both projects? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) IRR Dry Prepeg % Solvent Prepeg % ________________________________________d. Calculate the incremental IRR for the cash flows. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) Incremental IRR % 7. Consider two mutually exclusive new product launch projects that Nagano Golf is considering. Assume the discount rate for Nagano Golf is 13 percent. (Do not round intermediate calculations. Round your “PI” answers to 3 decimal places (e.g., 32.161) and other answers to 2 decimal places. (e.g., 32.16)) Project A: Nagano NP-30. Professional clubs that will take an initial investment of $640,000 at time 0. Next five years (Years 1–5) of sales will generate a consistent cash flow of $275,000 per year. Introduction of new product at Year 6 will terminate further cash flows from this project.Project B: Nagano NX-20. High-end amateur clubs that will take an initial investment of $650,000 at Time 0. Cash flow at Year 1 is $190,000. In each subsequent year cash flow will grow at 10 percent per year. Introduction of new product at Year 6 will terminate further cash flows from this project. Year NP-30 NX-200 –$ 640,000 –$ 650,000 1 275,000 190,000 2 275,000 209,000 3 275,000 229,900 4 275,000 252,890 5 275,000 278,179 ________________________________________ Complete the following table: NX-30 NX-20 Payback years years IRR % % PI NPV $ $ ________________________________________

Try it now!

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

EssayBrill has stood as the world’s leading custom essay writing services providers. Once you enter all the details in the order form under the place order button, the rest is up to us.

Essays

At EssayBrill, we prioritize on all aspects that bring about a good grade such as impeccable grammar, proper structure, zero-plagiarism and conformance to guidelines. Our experienced team of writers will help you completed your essays and other assignments.

Admissions

Admission and Business Papers

Be assured that you’ll definitely get accepted to the Master’s level program at any university once you enter all the details in the order form. We won’t leave you here; we will also help you secure a good position in your aspired workplace by creating an outstanding resume or portfolio once you place an order.

Editing

Editing and Proofreading

Our skilled editing and writing team will help you restructure you paper, paraphrase, correct grammar and replace plagiarized sections on your paper just on time. The service is geared toward eliminating any mistakes and rather enhancing better quality.

Coursework

Technical papers

We have writers in almost all fields including the most technical fields. You don’t have to worry about the complexity of your paper. Simply enter as much details as possible in the place order section.