The following are two independent projects that you are evaluating. the first project has cash flows of −$161,900, $60,800, $162,300, and -$75,000 for years 0 to 3, respectively. the second project has cash flows of −$175,600, $261,800, -$165,000, $145,000 and -$75,000. which of these, best summarizes your situation?
a. project 1 has 2 irrs and project 2 has 2 irrs. therefore, we should not use irr to evaluate the projects.
b. project 1 has 1 irr and project 2 has 2 irrs. therefore, we should use irr only to evaluate project 1.
c. project 1 has 2 irrs and project 2 has 3 irrs. therefore, we should not use irr to evaluate the projects.
d. project 1 has 3 irrs and project 2 has 4 irrs. therefore, we should not use irr to evaluate the projects.
e. none of the above is correct.
Answers: 3
Another question on Business
Business, 21.06.2019 19:40
Michigan mattress company is considering the purchase of land and the construction of a new plant. the land, which would be bought immediately (at t = 0), has a cost of $100,000 and the building, which would be erected at the end of the first year (t = 1), would cost $500,000. it is estimated that the firm's afterminustax cash flow will increase by $100,000 starting at the end of the second year, and that this incremental flow would increase at a 10 percent rate annually over the next 10 years. what is the approximate payback period?
Answers: 3
Business, 22.06.2019 09:00
According to this excerpt, a key part of our national security strategy is
Answers: 2
Business, 22.06.2019 10:50
The uptowner just paid an annual dividend of $4.12. the company has a policy of increasing the dividend by 2.5 percent annually. you would like to purchase shares of stock in this firm but realize that you will not have the funds to do so for another four years. if you require a rate of return of 16.7 percent, how much will you be willing to pay per share when you can afford to make this investment?
Answers: 3
Business, 22.06.2019 17:30
Which of the following services will be provided by a full-service broker but not by a discount broker? i. research of potential investment opportunities ii. purchase and sale of stock at your request iii. recommendation of investments a. i and iii b. ii only c. iii only d. i, ii, and ii
Answers: 2
You know the right answer?
The following are two independent projects that you are evaluating. the first project has cash flows...
Questions
History, 16.02.2021 07:30
World Languages, 16.02.2021 07:30
Chemistry, 16.02.2021 07:30
Chemistry, 16.02.2021 07:30
Mathematics, 16.02.2021 07:30
