Identified two mutually exclusive projects, Finance Basics

Assignment Help:

The director of capital budgeting for a firm has identified two mutually exclusive projects, A and B, with the following expected net cash flows:

Expected Net Cash Flows
Year Project A Project B
0 ($100) ($100)
1 70 10
2 50 60
3 20 80

Both of the projects have a cost of capital of 14 percent.

(i) What is the regular payback period (in years) for Project B?

Regular (non-discounted) Payback Period for B = ____________________.

(ii) What is Project A's net present value (NPV)?

NPV for A = ____________________.

(iii) What is the profitability index (PI) for Project B?

Profitability Index for B = ____________________.

(iv) What is the modified internal rate of return for Project A?

MIRR for Project A = ____________________.


Related Discussions:- Identified two mutually exclusive projects

Channelling of funds from savers to spenders important, How is the channell...

How is the channelling of funds from savers to spenders very important? The channelling of funds by savers to spenders is very significant for two purposes: • One, lender-sa

Maximum price of uniformed bonds, Say that a buyer of bonds values good bon...

Say that a buyer of bonds values good bonds at $500 and values bad bonds at $250. Sellers of both good and bad bonds value them at $350. If the fraction of good sellers and bad s

Future value of single or multiple cash flows, Do your experts provide Futu...

Do your experts provide Future Value of Single or Multiple Cash Flows assignment help? I need urgent help in my college assignment.

Underwriting - stock market, Underwriting - Stock Market 1. This is th...

Underwriting - Stock Market 1. This is the supposition of risk relating unsubscribed shares 2. When new shares are issued, they might be beneath -written or unsubscribed. A

Define the term - finding a broker, Define the term - Finding a Broker ...

Define the term - Finding a Broker Selection of a broker depends largely on the kind of services rendered by a specific broker as well as upon the type of transaction that a

Actions of shareholders in agency conflict, Actions of Shareholders in Agen...

Actions of Shareholders in Agency Conflict a) Disposal of assets required like collateral for the debt in this. In this case the bondholder is exposed to more risk becaus

Debenture finance, Debenture Finance A type of long term debt raised a...

Debenture Finance A type of long term debt raised after a company sells debenture certificates to the holder and raises finance in return. The term debenture has its source fr

Lock-box system, Lock-Box System In a lock-box system, the customer se...

Lock-Box System In a lock-box system, the customer sent the payments to a post office box. The post office box is emptied with the firm's bank at minimum once or twice all bus

Government - measuring business performance, Government - Measuring Busines...

Government - Measuring Business Performance Government The Government is interested particularly in utility companies as KPLC, KPTC and such will offers public services -

Write Your Message!

Captcha
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