Question: 7. Consider the investment projects given in the table below. Assume that MARR = 15% in the following questions. Click the icon to view the

7. Consider the investment projects given in the table below. Assume that MARR = 15% in the following questions. Click the icon to view the net cash flows for the projects. Click the icon to view the interest factors for discrete compounding when MARR = 15% per year. (a) Identify the / ('s) for each investment. If the project has more than one / , identify all of them. Compute / for project 1. Select the correct choice below and, If necessary, fill in the the answer box(es) to complete your answer. O A. Project 1 has only one positive ? " of %. (Round to one decimal place.) O B. Project 1 has two positive / " values of % and %. (Round to one decimal place. Enter O C. Project 1 has no positive / " values. Compute / "for project 2. Select the correct choice below and, If necessary, fill in the the answer box(es) to complete your answer. O A. Project 2 has only one positive / of %. (Round to one decimal place.) O B. Project 2 has two positive / " values of % and %. (Round to one decimal place. Enter O C. Project 2 has no positive / " values. Compute / for project 3. Select the correct choice below and, if necessary, fill in the the answer box(es) to complete your answer. O A. Project 3 has only one positive ? " of %. (Round to one decimal place.) O B. Project 3 has two positive / " values of % and %. (Round to one decimal place. Enter O C. Project 3 has no positive / " values. (b) Which project(s) is (are) a mixed investment? Select the correct choices from the drop-down menus below. Project Mixed or Pure Project 1 (1 Project 2 (2) Project 3 (3) (c) Compute the IRR for each project. (Round to one decimal place.) Project IRR Project 1 Project 2 Project 3 (d) Compute the MIRR for each project at MARR = 15%. Assume the financing cost is also 15%. (Round to one decimal lace.) Project MIRR Project 1 % Project 2 Project 3 (e) Determine the acceptability of each project. Select the correct choices from the drop-down menus below. Project Should the project be accepted? Project 14 Project 2 (5) Project 3 (6) 5: More Info Net Cash Flow n Project 1 Project 2 Project 3 -$7,000 $6,000 $2,000 8,500 12,000 8,000 WN - 8,500 32,000 - 8,000 47,000 6: More Info Single Payment Equal Payment Series Compound Present Compound Sinking Present Capital Amount Worth Amount Fund Worth Recovery Factor Factor Factor Factor Factor Factor (F/P, I, N) (P/F, i, N) (F/A, i, N) (A/F, 1, N) (P/A, I, N) (A/P, I N) 1.1500 0.8696 1.0000 1.0000 0.8696 1.1500 1.3225 0.7561 2.1500 0.4651 1.6257 0.6151 on A CO N - 1.5209 0.6575 3.4725 0.2880 2 2832 0.4380 1.7490 0.5718 4.9934 0.2003 2. 8550 0.3503 2.0114 D.4972 6.7424 0.1483 3.3522 0.2983 2.3131 D.4323 8.7537 0.1142 3.7845 0.2642 2.6600 D.3759 11.0668 0.0904 4.1604 0.2404 3.0590 D.3269 13.7268 0.0729 4.4873 0.2229 3.5179 D.2843 16.7858 0.0596 4.7716 0.2096 4.0456 D.2472 20.3037 0.0493 5.0188 0.1993 (1) Mixed (2) O Pure (3) O Cannot be determined Cannot be determined O Cannot be determined Mixed O Pure O Mixed Pure (4) O Reject (5) O Accept (6) O Accept O Accept O Reject O Reject
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
