Question: please help with question 1 Capital Budgeting Problem 1 You have the following projects available Time Period Project Cash Flows $100,000 $70,000 $30,000 $25,000 $10,000

please help with question 1 Capital Budgeting Problem 1 You have theplease help with question 1

Capital Budgeting Problem 1 You have the following projects available Time Period Project Cash Flows $100,000 $70,000 $30,000 $25,000 $10,000 $1,000 12% $100,000 $2,000 $10,000 S20,000 $68,000 $80,000 12% $25,000 $20,000 $80,000 $12,000 $55,000 $4,000 Discount Rate I 5% 8% Note: For simplicity, we measure payback period in full years (so if a project's initial investment is not fully -3 and it is more than fully repaid by t 4, we will say that the payback period is four years, rather than incorporating only a fraction of the last year and concluding that the payback period is 3.4 ycars, for example). repaid by t Calculate the following for projects A, B and D: payback period, IRR(s), NPV and Profitability Index b. a. Calculate the IRR(s) and the NPV for project C. Which project(s) would you implement if the four projects were independent from cach other? d. c. Which project(s) would you implement if the four projects were mutually exclusive? Problem 2 You are thinking about getting a new grill for your backyard entertaining. You have a choice between a Weber Kettle Grill that uses charcoal and a Weber Gas Grill that operates on a natural gas feed from your housc. The Kettle grill costs $290 and will last about 5 years. You estimate that you will use $185 worth of charcoal each year when using the Kettle grill. The Gas Grill costs $950. It does not require charcoal, but you will spend $80 per year for the natural gas used when cooking on the gas grill. The Gas Grill will last 8

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!