Question: Please help me with these simple financial questions. Please see attached file. Module 9 Practice Set -NPV,IRR, Payback and PI, Problems with IRR and PI,

 Please help me with these simple financial questions. Please see attached

Please help me with these simple financial questions. Please see attached file.

file. Module 9 Practice Set -NPV,IRR, Payback and PI, Problems with IRR

Module 9 Practice Set -NPV,IRR, Payback and PI, Problems with IRR and PI, Real Options 1. For Buy Coastal, Inc. compute payback for the following projects. Year 0 1 2 3 4 Pay- Cash Flow Cash Flow $40,000 18,000 ? ? 2. For Projects A and B, compute the IRR. Year IRR 0 1 2 3 Cash Flow Cash Flow ? ? 3. A project that provides annual cash flows of $28,500 for nine years costs $138,000 today. What is the IRR? 4. Mahjong, Inc. has identified the following two mutually exclusive projects: Year 0 1 2 3 4 Cash Flow Cash Flow 7,000 ? ? 5. Light Sweet Petroleum, Inc. wants you to compute the NPV for the following cash flows using a 12 percent required return: Year Cash 0 1 2 ? 6. What is the profitability index for the following set of cash flows if the relevant discount rate is 10 percent? Year PI Cash Flow 0 1 2 3 $14,000 ? 7 6 5 7. Consider the following two mutually exclusive projects: Year 0 1 2 3 4 Cash Flow Cash Flow 40,000 12,000 ? If you require a return of 15 percent, which project should you choose? Module 9 Practice Set -NPV,IRR, Payback and PI, Problems with IRR and PI, Real Options 1. For Buy Coastal, Inc. compute payback for the following projects. Year 0 1 2 3 4 Pay- Cash Flow Cash Flow $40,000 18,000 ? ? 2. For Projects A and B, compute the IRR. Year IRR 0 1 2 3 Cash Flow Cash Flow ? ? 3. A project that provides annual cash flows of $28,500 for nine years costs $138,000 today. What is the IRR? 4. Mahjong, Inc. has identified the following two mutually exclusive projects: Year 0 1 2 3 4 Cash Flow Cash Flow 7,000 ? ? 5. Light Sweet Petroleum, Inc. wants you to compute the NPV for the following cash flows using a 12 percent required return: Year Cash 0 1 2 ? 6. What is the profitability index for the following set of cash flows if the relevant discount rate is 10 percent? Year PI Cash Flow 0 1 2 3 $14,000 ? 7 6 5 7. Consider the following two mutually exclusive projects: Year 0 1 2 3 4 Cash Flow Cash Flow 40,000 12,000 ? If you require a return of 15 percent, which project should you choose? Module 9 Practice Set -NPV,IRR, Payback and PI, Problems with IRR and PI, Real Options 1. For Buy Coastal, Inc. compute payback for the following projects. Year 0 1 2 3 4 Pay- Cash Flow Cash Flow $40,000 18,000 ? ? 2. For Projects A and B, compute the IRR. Year IRR 0 1 2 3 Cash Flow Cash Flow ? ? 3. A project that provides annual cash flows of $28,500 for nine years costs $138,000 today. What is the IRR? 4. Mahjong, Inc. has identified the following two mutually exclusive projects: Year 0 1 2 3 4 Cash Flow Cash Flow 7,000 ? ? 5. Light Sweet Petroleum, Inc. wants you to compute the NPV for the following cash flows using a 12 percent required return: Year Cash 0 1 2 ? 6. What is the profitability index for the following set of cash flows if the relevant discount rate is 10 percent? Year PI Cash Flow 0 1 2 3 $14,000 ? 7 6 5 7. Consider the following two mutually exclusive projects: Year 0 1 2 3 4 Cash Flow Cash Flow 40,000 12,000 ? If you require a return of 15 percent, which project should you choose

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