Question: answer the folowwing using excel / excel formula LOI 13. Calculating Payback Stenson, Inc., imposes a payback cutoff of three years for its international investment


LOI 13. Calculating Payback Stenson, Inc., imposes a payback cutoff of three years for its international investment projects. If the company has the following two projects available, should it accept either of them? Year Cash Flow (A) Cash Flow (B) 0 -$75,000 -$125.000 1 33,000 29,000 2 36,000 32,000 3 19.000 35,000 4 9,000 240,000 LO35. Calculating IRR A firm evaluates all of its projects by applying the IRR rule. If the required return is 11 percent, should the firm accept the following project? Year Cash Flow 0 -$157,300 74.000 1 2 87.000 46,000 LO3, L04 11. NPV versus IRR Consider the following two mutually exclusive projects: Year Cash Flow (X) Cash Flow (Y) -$23.900 0 -$23,900 1 13.100 9.300 2 9,480 10.620 3 7,890 11,180 Sketch the NPV profiles for X and Y over a range of discount rates from 0 to 25 percent. What is the crossover rate for these two projects
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