Carla Vista Corp. management is evaluating two independent projects. The costs and expected cash flows are...

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Carla Vista Corp. management is evaluating two independent projects. The costs and expected cash flows are given in the following table. The cost of capital is 15 percent. Year 1 2 3 4 5 A -$295,132 119,300 119,300 119,300 119,300 119,300 The NPV of project A is $ There is -$406,208 168,190 142,830 The IRR of Project A is B a. Calculate the projects' NPV. (Enter negative amounts using negative sign eg. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to 0 decimal places, eg. 1.525.) Carla Vista should choose 149,500 138,800 b. Calculate the projects' IRR. (Round answer to 2 decimal places, eg. 15.25%) 109,900 c. Which project should be chosen based on NPV? Based on IRR? Is there a conflict? • Tauthonk and Media and project is s % and Project Bis V between the NPV and IRR decisions. ✓ will be accepted. d. If you are the decision maker for the firm, which project or projects will be accepted? Q ALE Q Q Q ALL Q Q Q ALE Q ALE Q ALT Q Q 52 52 02 02 A Q Carla Vista Corp. management is evaluating two independent projects. The costs and expected cash flows are given in the following table. The cost of capital is 15 percent. Year 1 2 3 4 5 A -$295,132 119,300 119,300 119,300 119,300 119,300 The NPV of project A is $ There is -$406,208 168,190 142,830 The IRR of Project A is B a. Calculate the projects' NPV. (Enter negative amounts using negative sign eg. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to 0 decimal places, eg. 1.525.) Carla Vista should choose 149,500 138,800 b. Calculate the projects' IRR. (Round answer to 2 decimal places, eg. 15.25%) 109,900 c. Which project should be chosen based on NPV? Based on IRR? Is there a conflict? • Tauthonk and Media and project is s % and Project Bis V between the NPV and IRR decisions. ✓ will be accepted. d. If you are the decision maker for the firm, which project or projects will be accepted? Q ALE Q Q Q ALL Q Q Q ALE Q ALE Q ALT Q Q 52 52 02 02 A Q

Answer rating: 100% (QA)

Answer Step by Step Explanation A 103 164 165 166 167 168 169 170 171 172 173 a 174 175 176 b 177 1... View the full answer