FIN 301, Section 002: CORI X Question 1 - Chapter 8 Ho X G Which of the following are X G According to Graham and X G True or false: According to X G The profitability index (PI) X + X F - C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question-group/k... LE * SDP Home Z Zimbra Collab Ctr Uber | Sign Up to D... I.T. Help Desk Macbook Support M TUmail New Tab Covalent vs. lonic b... C Log Off Z Philadelphia School.. . Results | Rental Car... Chapter 8 Homework i Saved Help Save & Exit Submit Check my work Bruin, Incorporated, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$ 67,000 -$ 67,000 43, 000 29, 300 AWNP 37,060 33, 300 Book 24, 500 39, 006 15, 400 24, 300 a-1. What is the IRR for each of these projects? Print Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. a-2. If you apply the IRR decision rule, which project should the company accept? b-1. Assume the required return is 13 percent. What is the NPV for each of these projects? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b-2. Which project will you choose of you apply the NPV decision rule? c-1. Over what range of discount rates would you choose Project A? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. c-2. Over what range of discount rates would you choose Project B? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. d. At what discount rate would you be indifferent between these two projects? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a-1. Project A % Project B % a-2. b-1. Project A Project B b-2. C - 1 . % C-2. % d. Discount rate 62.F HI O 3:13 PM Sunny 10/16/2022FIN 301, Section 002: CORI X Question 2 - Chapter 8 Ho X G Which of the following are X G According to Graham and X G True or false: According to X G The profitability index (PI) X + X F - C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question-group/k... [ * SDP Home Z Zimbra Collab Ctr Uber | Sign Up to D... I.T. Help Desk Macbook Support M TUmail New Tab Covalent vs. lonic b... C Log Off Z Philadelphia School... . Results | Rental Car... Chapter 8 Homework i Saved Help Save & Exit Submit Check my work 2 Howell Petroleum, Incorporated, is trying to evaluate a generation project with the following cash flows: Year Cash Flow e -$ 36,500,000 54, 500, 000 000 '00s'IT- Book a. If the company requires a return of 9 percent on its investments, what is the NPV of the project? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Print b. Compute the IRRs for this project. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. Enter the larger IRR in the first answer box and the smaller IRR in the second answer box. If you can only calculate one IRR, enter it in both boxes to receive partial credit. A negative answer should have a minus sign. a. NPV b. Larger IRR % Smaller IRR % 62.F Sunny O 10/16/2022FIN 301, Section 002: CORE X Question 3 - Chapter 8 Ho X G Which of the following are X G According to Graham and X G True or false: According to X G The profitability index (PI) X + X F - C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question-group/k... E * SDP Home Z Zimbra Collab Ctr Uber | Sign Up to D... I.T. Help Desk Macbook Support M TUmail New Tab Covalent vs. Ionic b... C Log Off Z Philadelphia School... . Results | Rental Car... Chapter 8 Homework i Saved Help Save & Exit Submit Check my work 3 The Michner Corporation is trying to choose between the following two mutually exclusive design projects: Year Cash Flow (I) Cash Flow (II) -$ 91, 000 -$ 59,000 40,900 12, 500 WNH 51, 000 38, 500 Book 31, 060 32, 500 a-1. If the required return is 14 percent, what is the profitability index for each project? Print Note: Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161. a-2. If the company applies the profitability index decision rule, which project should it take? b-1. If the required return is 14 percent, what is the NPV for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b-2. If the company applies the net present value decision rule, which project should it take? a-1. Project Project II a-2 b-1. Project I Project II b-2 62.F Sunny O 6 710 10/16/2022FIN 301, Section 002: CORE X Question 4 - Chapter 8 Ho X G Which of the following are X G According to Graham and X G True or false: According to X G The profitability index (PI) X + X F - C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question-group/k... E * SDP Home Z Zimbra Collab Ctr Uber | Sign Up to D... I.T. Help Desk Macbook Support M TUmail New Tab Covalent vs. lonic b... C Log Off Z Philadelphia School.. . Results | Rental Car... Chapter 8 Homework i Saved Help Save & Exit Submit Check my work 4 Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) -$ 428,000 -$ 41, 500 42, 500 20, 706 AWNH 53,500 000'ET Book 80, 500 20, 100 543,000 16,900 The required return on these investments is 14 percent. Print a. What is the payback period for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. What is the NPV for each project: Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. c. What is the IRR for each project? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. d. What is the profitability index for each project? Note: Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161. e. Based on your answers in (a) through (d), which project will you finally choose? a. Project A years Project B years b. Project A Project B c. Project A % Project B d. Project A Project B e. 62.F HI O 6 710 3:13 PM Sunny 10/16/2022FIN 301, Section 002: CORI X Question 5 - Chapter 8 Ho X G Which of the following are X G According to Graham and X G True or false: According to X G The profitability index (PI) X + X F - C ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question-group/k... LE * SDP Home Z Zimbra Collab Ctr Uber | Sign Up to D... I.T. Help Desk Macbook Support M TUmail New Tab Covalent vs. lonic b... C Log Off Z Philadelphia School... . Results | Rental Car... Chapter 8 Homework i Saved Help Save & Exit Submit Check my work 5 Marissa Manufacturing is presented with the following two mutually exclusive projects. The required return for both projects is 20 percent Year Project M Project N 000'GET $- -$ 356,000 63, 600 152, 000 Book AWNHO 81, 600 181, 000 72, 600 137 , 000 58 , 600 000 'TTT Print a. What is the IRR for each project? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. b. What is the NPV for each project Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. c. Which, if either, of the projects should the company accept? a. Project M % Project N % b. Project M Project N c. Accept project 62.F Sunny O 10/16/2022