Consider the following cash flows of two mutually exclusive projects for Scotia Rubber Company. Assume the...
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Consider the following cash flows of two mutually exclusive projects for Scotia Rubber Company. Assume the discount rate for Scotia Rubber Company is 8 percent (Do not round intermediate calculations. Round the answers to 2 decimal places. Omit S sign in your response.) Year Dry Prepreg Solvent Prepreg $1,810, 000 1,111, D00 922, 00 761, 000 -S n0s, 000 430, 000 710, 000 412,000 a. What is the payback period for each project? Payback period years Dry Prepeg Solvent Prepeg years b. What is the NPV for each project? NPV Dry Prepeg Solvent Prepeg c. What is the IRR for each project? IRR Dry Prepeg Solvent Prepeg d. Calculate the incremental IRR for the cash flows. Consider the following cash flows of two mutually exclusive projects for Scotia Rubber Company. Assume the discount rate for Scotia Rubber Company is 8 percent (Do not round intermediate calculations. Round the answers to 2 decimal places. Omit S sign in your response.) Year Dry Prepreg Solvent Prepreg $1,810, 000 1,111, D00 922, 00 761, 000 -S n0s, 000 430, 000 710, 000 412,000 a. What is the payback period for each project? Payback period years Dry Prepeg Solvent Prepeg years b. What is the NPV for each project? NPV Dry Prepeg Solvent Prepeg c. What is the IRR for each project? IRR Dry Prepeg Solvent Prepeg d. Calculate the incremental IRR for the cash flows.
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Answer rating: 100% (QA)
a Payback period Dry Prepreg 176 Years Solvent Prepreg 141 Years b NVP Dry Prepreg 613276 Solvent Pr... View the full answer
Related Book For
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
Posted Date:
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