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 Rubber Company is 8 percent: (Do not round intermediate calculations. Round the answers to 2 decimal pla response.) Year Solvent Prepreg Dry Prepreg -$1,860,000 -$ 830,000 455,000 760,000 422,000 1 1,116,000 932,000 766,000 3 a. What is the payback period for each project? Payback period Dry Prepeg years Solvent Prepeg years b. What is the NPV for each project? NPV Dry Prepeg Solvent Prepeg A 6A c. What is the IRR for each project? IRR Dry Prepeg Solvent Prepeg d. Calculate the incremental IRR for the cash flows. Incremental IRR Consider the following cash flows of two mutually exclusive projects for Scotia Rubber Company. Assume the Rubber Company is 8 percent: (Do not round intermediate calculations. Round the answers to 2 decimal pla response.) Year Solvent Prepreg Dry Prepreg -$1,860,000 -$ 830,000 455,000 760,000 422,000 1 1,116,000 932,000 766,000 3 a. What is the payback period for each project? Payback period Dry Prepeg years Solvent Prepeg years b. What is the NPV for each project? NPV Dry Prepeg Solvent Prepeg A 6A c. What is the IRR for each project? IRR Dry Prepeg Solvent Prepeg d. Calculate the incremental IRR for the cash flows. Incremental IRR
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a Payback Period Number of years before full recovery Unrecove... 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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