Question: Please explain Qs 9 and 10 using BAII plus if possible or give me the formula to solve these problems Thanks Tesar Chemicals is considering

Please explain Qs 9 and 10 using BAII plus if possible or give me the formula to solve these problems Thanks

Please explain Qs 9 and 10 using BAII plus if possible or

Tesar Chemicals is considering projects S and L, whose cash flows are shown below. These projects are mutually exclusive, equally risky, and not repeatable. The CEO believes the IRR is the best selection criterion, while the CFO advocates the NPV. If the decision is made by choosing the project with the higher IRR rather than the one with the higher NPV, how much, if any, value will be forgone? a. $13810 b. $149.21 C. $160.31 a. $171.42 e. $182.52 Projects s and L are equally risky, mutually exclusive projects with normal cash flows. Project S has an IRR of 10%, while Project Ls IRR is 8%. The two projects have the same NPV when the WACC is 6%. Which of the following statements is CORRECT? a. If the WACC is 12%, both projects will have a positive NPV. b. If the WACC is 5\%, Project S will have the higher NPV. c. If the WACC is 10%, Project S will have the lower NPV. (c.) If the WACC is 12%, both projects will have a negative NPV. e. None of the statements above is correct

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