Exercise 14-5 (Algo) Preference Ranking [LO14-5] Information on four Investment proposals is given below: Investment Proposal C $ (150,000) 228,600 $ 78,600 6 years D $ (1,260,000) 1,681,100 $ 421,100 6 years Investment required A B Present value of cash inflows $ (130,000) 185,600 $ 55,600 $ (140,000) 193,800 $ 53,800 5 years 7 years Net present value Life of the project Required: 1. Compute the profitability Index for each Investment proposal. Note: Round your answers to 2 decimal places. 2. Rank the proposals in terms of preference. Investment Profitability Proposal Rank Index Preference A B с D
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- Exercise 14-5 (Algo) Preference Ranking [LO14-5] Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Required: Investment Profitability Proposal Index A B C D A $ (60,000) 88,600 $ 28,600 1. Compute the profitability index for each investment proposal. Note: Round your answers to 2 decimal places. 2. Rank the proposals in terms of preference. Rank Preference 5 years Investment Proposal C $ (110,000) 168,600 $ 58,600 B $ (190,000) 260,600 $ 70,600 7 years 6 years D $(2,660,000) 3,551,000 $ 891,000 6 yearsExercise 14-11 (Algo) Preference Ranking of Investment Projects [LO14-5] Oxford Company has limited funds available for investment and must ration the funds among four competing projects. Selected information on the four projects follows: Project InvestmentRequired PresentValue of Cash Inflows Life oftheProject(years) InternalRateof Return A $ 180,000 $ 224,323 7 21% B $ 151,000 $ 197,000 12 18% C $ 102,000 $ 155,035 7 17% D $ 161,000 $ 233,136 3 16% The net present values should be computed using a 10% discount rate. The company wants your assistance in determining which project to accept first, second, and so forth. Required: 1. Compute the profitability index for each project. 2. In order of preference, rank the four projects in terms of net present value, profitability index, and internal rate of return.Exercise 14-5 (Algo) Preference Ranking [LO14-5] Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Investment Profitability Proposal Index A BUD В с D $ (280,000) 393,900 $ 113,900 Required: 1. Compute the profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. Rank Preference. 5 years Investment Proposal C $ (50,000) 78,100 $28,100 B $ (140,000) 192,800 $ 52,800 7 years 6 years D $ (780,000) 1,038, 100 $ 258, 100 6 years.
- Exercise 12-5 (Algo) Preference Ranking [LO12-5] Information on four investment proposals is given below: Investment required Present value of cash inflows Net present value Life of the project Investment Profitability Proposal Index A B C D A $ (60,000) 88,600 $ 28,600 Rank Preference 5 years Investment Proposal C $ (110,000) 168,600 $ 58,600 B $ (190,000) 260,600 $ 70,600 Required: 1. Compute the profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. 7 years 6 years D $ (2,660,0 3,551,0 $ 891,0Exercise 14A-1 (Algo) Basic Present Value Concepts [LO14-7] Annual cash inflows that will arise from two competing investment projects are given below: Year Investment A Investment B 1 $ 7,000 $ 10,000 2 8,000 9,000 3 9,000 8,000 4 10,000 7,000 $ 34,000 $ 34,000 The discount rate is 5%. Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables. Required: Compute the present value of the cash inflows for each investment.Exercise 12-11 (Algo) Preference Ranking of Investment Projects [LO12-5] Oxford Company has limited funds available for investment and must ration the funds among four competing projects. Selected information on the four projects follows: Project A B C D Investment Required $ 130,000 $ 136,000 $ 105,000 $ 169,000 Present value of Cash Inflows $ 249,323 $ 222,000 $ 180,035 $ 258, 136 Required 1 Required 2 Project Life of the Project (years) 7 The net present values should be computed using a 10% discount rate. The company wants your assistance in determining which project to accept first, second, and so forth. A B C 12 Required: 1. Compute the profitability index for each project. 2. In order of preference, rank the four projects in terms of net present value, profitability index, and internal rate of return. 7 3 Complete this question by entering your answers in the tabs below. Profitability Index Internal Rate of Return 20% 18% 19% 17% Compute the profitability index for each project.…
- Problem 13-11 MIRR (LG13-4) Compute the MIRR statistic for Project I if the appropriate cost of capital is 12 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.) Project I Time: Cash flow: 0 1 -$11,600 $5,630 $4,480 2 3 $1,820 4 $2,300 MIRR % ces Should the project be accepted or rejected? O rejected acceptedQ8 - Consider the following two mutually exclusive projects: Year Cash Flow(X) Cash Flow(Y) 0 –$ 19,900 –$ 19,900 1 8,825 10,050 2 9,050 7,775 3 8,775 8,675 a) Calculate the NPV of Projects X and Y at discount rates of 0 %, 5 % ,10 %, 15 %, and 20%. b) Calculate the IRR for each project. c) Calculate the crossover rate for these two projects.11:52 Investment Appraisal (Year 2 Column 2... £393,460 7. Based on NPV which project would you ассept? Net Cash F Net Cash F Net Cash F Project 2 (110,000) (105,000) 35,000 35,000 Project 3 (116,000) 40,000 40,000 40,000 40,000 40,000 84,000 Project 1 Year 0 Year 1 25,000 Year 2 20,000 Year 3 35,000 35,000 Year 4 35,000 35,000 70,000 45,000 Year 5 35,000 50,000 Project 1 Project 2 Project 3 8. When calculating NPV will using a higher discount factor lead to ...? Activity Chat Teams Assignments More
- 19 es TB MC Qu. 14-36 (Algo) Moates Corporation has... Moates Corporation has provided the following data concerning an investment project that it is considering: $ 190,000 $ 120,000 per year 4 years 9% Initial investment Annual cash flow Expected life of the project Discount rate Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. The net present value of the project is closest to: Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Multiple Choice $190,000 $198,680 $(70,000)Exercise 12-5 Preference Ranking [LO12-5] Information on four investment proposals is given below: Investment Proposal B C D Investment required Present value of cash inflows A $(136,000) $(146,000) $(116,000) $(189,000) 209,440 216,080 153, 120 275,940 Net present value $ 73,440 $ 70,080 $ 37,120 $ 86,940 Life of the project 5 years 7 years 6 years 6 years Required: 1. Compute the project profitability index for each investment proposal. (Round your answers to 2 decimal places.) 2. Rank the proposals in terms of preference. Investment Proposal Project Profitability Rank Preference Index ABCD 0.54 First 0.48 Second Fourth ThirdExercise 12-14 (Algo) Comparison of Projects Using Net Present Value [LO12-2] Labeau Products, Limited, of Perth, Australia, has $15,000 to invest. The company is trying to decide between two alternative uses for the funds as follows: Invest in Project X Invest in Project Y Investment required $ 15,000 $ 15,000 Annual cash inflows $ 5,000 Single cash inflow at the end of 6 years $ 36,000 Life of the project 6 years 6 years The company’s discount rate is 16%. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: 1. Compute the net present value of Project X. 2. Compute the net present value of Project Y. 3. Which project would you recommend the company accept?