What is the npv of projects x and y at discount rates

Assignment Help Financial Accounting
Reference no: EM132492578

Consider the following two mutually exclusive projects:

Year            Cash Flow             cash Flow

                           (X)               (Y)

0                 -$20,400                 -$20,400

1                      8,950                  10,300

2                       9,300                 7,900

3                         8,900                8,800

Question 1: Calculate the IRR for each project. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

Question 2: What is the crossover rate for these two projects? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Question 3: What is the NPV of Projects X and Y at discount rates of 0 percent, 15 percent, and 25 percent? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Reference no: EM132492578

Questions Cloud

Compute the number of units that must be sold in order : Compute the number of units that must be sold in order to achieve a target pretax income of $172,400. The budgeted income statement
Structure of the us healthcare system : How would you make decisions regarding who has access to what services? Do you think the current approach is the right one?
Quantity of production to maximise profits : How should a monopoly choose its quantity of production to maximise profits?
Calculate the amount of Subpart F income : Wolf, Inc.'s Subpart F income for the current tax year is $1,100,000, the Current E&P is $3,100,000, Calculate the amount of Subpart F income
What is the npv of projects x and y at discount rates : What is the NPV of Projects X and Y at discount rates of 0 percent, 15 percent, and 25 percent? (A negative answer should be indicated by a minus sign)
What is humanitarian intervention : What is humanitarian intervention? Theoretically, when and where there are governments that cannot protect their own people, the international community
Prepare the adjusting journal entry for bad debt expense : If allowance for doubtful accounts had a debit balance of $827 instead of a credit balance of $2,903, prepare the adjusting journal entry for bad debt expense
What would be the net present value : What would be the net present value? Michaels, Inc., purchased a machine for $75,000. The machine has a useful life of five years
Prepare the Balance Sheet for the fiscal year : Retained Earnings- credit 101,145 and Depreciation Expense- debit 145,840. Use this information to prepare the Balance Sheet for the fiscal year

Reviews

Write a Review

Financial Accounting Questions & Answers

  How much revenue and gross profit is recognized

During the first year was $1.5 million. How much revenue and gross profit is recognized in the first year under the percentage-of-completion method?

  How should restricted cash fund be reported on balance sheet

How should restricted cash funds be reported on the balance sheet? How are estimated bad debts recorded in the financial statements?

  Accounting measurements to assist with determining areas

Under the Required section of the exercise you are to select an accounting principle or practice for each of the countries - France, Germany, Czech Republic, Netherland and U.K.- that does not align with international norms. Utilize the textbook sect..

  Unadjusted trial balance-determine net income or net loss

Wyoming Tours Co. is a travel agency. The nine transactions recorded by Wyoming Tours during June 2016, its first month of operations, are indicated in the following T accounts: Prepare an unadjusted trial balance, listing the accounts in their prope..

  What are some of common parts of each of these report

identify what are some of common parts of each of these annual reports. Also, go into a little detail and give your opinion as to what is different between these two reports.

  Determine what is the cost of preferred stock

If a company pays $4.50 as the annual dividend on their preferred stock, and the stock is currently selling for $75 a share, what is the cost of preferred stock

  Computation of cost of goods sold using the given datausing

computation of cost of goods sold using the given data.using the following data compute cost of goods sold.inventory

  How emilio and jasmine will be able to finance

How Emilio and Jasmine will be able to finance their cost of living requirements in the event that the value of their investment drops by 25% in a single year.

  Provide the necessary journal entries that would be made

BUSN2036 Financial Accounting Issues Assignment. Provide the necessary journal entries that would be made in the books of Double Island Ltd

  How much in fringe benefit costs be allocated to a-line

Logan Corporation has 30 employees, 10 in "A-line," and 20 in "B-line.” Logan incurred $180,000 in fringe benefits costs last year. How much in fringe benefit costs should be allocated to "A-line"?

  What is the value of oriole companys inventory at may

What The value of Oriole Company's inventory at May 31, 2017 is ? At May 1, 2017, Oriole Company had beginning inventory consisting of 340 units

  Inventory errors the net income per books of adamson

inventory errors the net income per books of adamson company was determined without knowledge of the errors indicated

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd