question archive The following two mutually-exclusive business opportunities are currently under consideration by your firm, The Sharper Investor The accounting department has forecasted pro formacash flows for both projects according to the following table: (each project is to be funded to require a discount rate of 15%) Year Cash Flow (A) Cash Flow (B) _ 0 -$525,000 -$60,000 1 30,000 30,000 2 75,000 15,000 3 75,000 9,000 4 1,125,000 3,000 1 Discounted payback of Project A (above) equals: a 361 years b 331 years c 40 years d 347 years 2 What is Project A’s Internal Rate of Return (SHOW ALL WORK)? a 2837% b 2749% c 2794% d 2913% e 2699% 3 The Profitability Index for Project B equals? a -$14,938 b 9500 c 13316 d 7510 e 8854 What is the crossover rate between projects A and B? (place answer here:____________ SHOW WORK on scratch sheet)
The following two mutually-exclusive business opportunities are currently under consideration by your firm, The Sharper Investor The accounting department has forecasted pro formacash flows for both projects according to the following table: (each project is to be funded to require a discount rate of 15%) Year Cash Flow (A) Cash Flow (B) _ 0 -$525,000 -$60,000 1 30,000 30,000 2 75,000 15,000 3 75,000 9,000 4 1,125,000 3,000 1 Discounted payback of Project A (above) equals: a 361 years b 331 years c 40 years d 347 years 2 What is Project A’s Internal Rate of Return (SHOW ALL WORK)? a 2837% b 2749% c 2794% d 2913% e 2699% 3 The Profitability Index for Project B equals? a -$14,938 b 9500 c 13316 d 7510 e 8854 What is the crossover rate between projects A and B? (place answer here:____________ SHOW WORK on scratch sheet)
Subject:FinancePrice: Bought3
The following two mutually-exclusive business opportunities are currently under consideration by your firm, The Sharper Investor The accounting department has forecasted pro formacash flows for both projects according to the following table: (each project is to be funded to require a discount rate of 15%)
Year Cash Flow (A) Cash Flow (B) _
0 -$525,000 -$60,000
1 30,000 30,000
2 75,000 15,000
3 75,000 9,000
4 1,125,000 3,000
1 Discounted payback of Project A (above) equals:
a 361 years b 331 years c 40 years d 347 years
2 What is Project A’s Internal Rate of Return (SHOW ALL WORK)?
a 2837% b 2749% c 2794% d 2913% e 2699%
3 The Profitability Index for Project B equals?
a -$14,938 b 9500 c 13316 d 7510 e 8854
What is the crossover rate between projects A and B?
(place answer here:____________ SHOW WORK on scratch sheet)
