Reference no: EM131197516
Directions:
Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link in the course shell. This homework assignment is worth 100 points.
Use the following information for Questions 1 through 3:
Assume you are presented with the following mutually exclusive investments whose expected net cash flows are as follows:
EXPECTED NET CASH FLOWS:
Year
|
Project A
|
Project B
|
0
|
-$400
|
-$650
|
1
|
-528
|
210
|
2
|
-219
|
210
|
3
|
-150
|
210
|
4
|
1,100
|
210
|
5
|
820
|
210
|
6
|
990
|
210
|
7
|
-325
|
210
|
1. (a) What is each project's IRR?
(b) If each project's cost of capital were 10%, which project, if either, should be selected? If the cost of capital were 17%, what would be the proper choice?
2. (a) What is each project's MIRR at the cost of capital of 10%? At 17%? (Hint: Consider Period 7 as the end of Project B's life.)
3. What is the crossover rate, and what is its significance?
Use the following information for Question 4:
The staff of Porter Manufacturing has estimated the following net after-tax cash flows and probabilities for a new manufacturing process:
Line 0 gives the cost of the process, Lines 1 through 5 give operating cash flows, and Line 5* contains the estimated salvage values. Porter's cost of capital for an average-risk project is 10%.
Net After-Tax Cash Flows
Year
|
P = 0.2
|
P = 0.6
|
P = 0.2
|
0
|
-$100,000
|
-$100,000
|
-$100,000
|
1
|
20,000
|
30,000
|
40,000
|
2
|
20,000
|
30,000
|
40,000
|
3
|
20,000
|
30,000
|
40,000
|
4
|
20,000
|
30,000
|
40,000
|
5
|
20,000
|
30,000
|
40,000
|
5'
|
0
|
20,000
|
30,000
|
4. Assume that the project has average risk. Find the project's expected NPV. (Hint: Use expected values for the net cash flow in each year.)
Depict the motion of the ball
: Assuming that all downward motion is in the positive direction, sketch the graph of velocity against time to depict the motion of the ball as it bounces three times.
|
Explain what type of study this is and why
: A random sample of 20 threads from each type was taken and subjected to a heat test to determine resistance (the length of time the fibers survive before starting to burn). Explain what type of study this is and why.
|
Why the sales team should or should not sell the product
: Create a PowerPoint presentation (8-10 slides) designed to deliver the research findings and recommendations in your Marketing Analysis Research Report to your manager. Your presentation should persuasively demonstrate your position on why the sal..
|
Determining the lowest acceleration rate
: An engineer is designing the runway for an airport. Of the planes that will use the airport, the lowest acceleration rate is likely to be 3 m/s2. The takeoff speed for this plane will be 65 m/s. Assuming this minimum acceleration, what is the mini..
|
What is the crossover rate and what is its significance
: What is each project's MIRR at the cost of capital of 10%? At 17%?- What is the crossover rate, and what is its significance?
|
What type of inference is possible from this study
: What type of inference is possible from this study?
|
Calculate the residual
: Regression line drawn as Y=C+1075x, when x was 2, and y was 239, given that y intercept was 11. calculate the residual
|
How surveys impact healthcare both negatively and positively
: Compare and contrast how surveys can impact healthcare both negatively and positively, then explain what steps can be used in helping to eliminate biases in the healthcare industry as it relates sampling and gender biases.
|
It there a possibility of bias in the responses
: If so, in which direction? Will randomization in selecting the respondents help reduce potential bias related to the sensitive questions? Will randomization in selecting the respondents help reduce any potential bias?
|