Question: Question 7 5 pts Your company is considering two mutually excluslve projects. The projects have the following cash flows: 0 $(1,200.00) $(1100.00 800.00 300.00 $

 Question 7 5 pts Your company is considering two mutually excluslve
projects. The projects have the following cash flows: 0 $(1,200.00) $(1100.00 800.00
300.00 $ 400.00 S 600.00 300.00 4 $ 900.00 100.00 200.00 3

Question 7 5 pts Your company is considering two mutually excluslve projects. The projects have the following cash flows: 0 $(1,200.00) $(1100.00 800.00 300.00 $ 400.00 S 600.00 300.00 4 $ 900.00 100.00 200.00 3 If the cost of capital for both of these projects is 9 percent, then what is the NPV for the project that has the lowest IRR? $295.25 $315.07 $251.55 $273.11 $336.88 Your flows from the projects are summarized below: company is considering two mutually exclusive projects, Project A and Project B. The cash Project A Project B Year 0 2 25,000 $30,000 3 $45000$50,000 $55,000$60,000 $60,000 $100,000 5 The firm has finally determined that the cost 0 cash flow) of Project B is $143,000. Based on this information, determine the discount rate at which the NPV for both projects is the same. @ 15.57% 14.79% 14.03% 12.59% 13.30% 5 pts You are examining a project with an upfront cost (T-o) of $100,000. The project generates annual after-tax FCF of $40,000 at T-1 through T-4Then, at T-s, the project will have to spend 25,000 (also after taxes) to restore the environment. As you can calculate, at a WACC of 10 percent, the project has a NPV of $11,271.58. Due to the negative cash flows at T-5, the project has multiple IRRs. To resolve this, you calculate the MIRR for this project. Further, to highlght the Impact of capltal rationing. you calculate the MIRR two ways: both with and without capital rationing, using a reinvestment rate of 17 percent where appropriate. What is the difference between the two MIRR calculations? 3.73% 2.67% 3.20% 2.13% 4.27%

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