Question: Please answer ASAP! please bold or circle answers! All techniques-Decision among mutually exclusive investments Pound Industries is attempting to select the best of three mutually

 Please answer ASAP! please bold or circle answers! All techniques-Decision among
mutually exclusive investments Pound Industries is attempting to select the best of
Please answer ASAP!
please bold or circle answers!

All techniques-Decision among mutually exclusive investments Pound Industries is attempting to select the best of three mutually exclusive projects. The initial investment and after-tax cash inflows associated with these projects are shown in the following table. Cash flows Project A Project B Project C Initial investment (CF) $140,000 $180,000 $170,000 Cash inflows (CF), t = 1 to 5 $45,000 $56,000 $56,500 a. Calculate the payback period for each project. b. Calculate the net present value (NPV) of each project, assuming that the firm has a cost of capital equal to 11% c. Calculate the internal rate of return (IRR) for each project. d. Indicate which project you would recommend. a. The payback period of project Ais years. (Round to two decimal places.) The payback period of project Bis years. (Round to two decimal places.) The payback period of project Cis years. (Round to two decimal places.) b. The NPV of project is $. (Round to the nearest cent.) The NPV of project Bis $. (Round to the nearest cent.) The NPV of project is $ (Round to the nearest cent.) c. The IRR of project Ais%. (Round to two decimal places.) Click to select your answer(s). Cash flows All techniques-Decision among mutually exclusive investments Pound Industries is attempting to select the best of three mutually exclus initial investment and after-tax cash inflows associated with these projects are shown in the following table. Project A Project B Project C Initial investment (CF) $140,000 $180,000 $170,000 Cash inflows (CF), t = 1 to 5 $45,000 $56,000 $56,500 a. Calculate the payback period for each project. b. Calculate the net present value (NPV) of each project, assuming that the firm has a cost of capital equal to 11%. c. Calculate the internal rate of return (IRR) for each project. d. Indicate which project you would recommend. c. The IRR of project A is % (Round to two decimal places.) The IRR of project Bis %. (Round to two decimal places.) The IRR of project is % (Round to two decimal places.) d. Which project would you recommend? (Select the best answer below.) O A. Project C B. Project A C. Project B

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!