Ivy Incorporated attempts to maximize shareholder value and uses CAPM for capital budgeting. The company is examining two mutually exclusive capital investment projects, summary information about each are below. Project Initial Investment NPV Discount Rate IRR Payback A $200 $232 10% 30% 6 years B $3.000 $654 10% 16% 4 years Which project would lvy Incorporated consider riskler? Select Which project(s) should Ivy incorporated accept? Select the BEST answer Select Besardless of your answers) above. now assume that Ivy Incorporated is Willing and able to immediately accept BOTH projects Project Initial Investment NPV Discount Rate IRR Payback $200 $232 30% 6 years B $3.000 $654 10% 16% 4 years What is the combined NPV of this decision? If the answer cannot be calculated, answer -999 e negative nine hundred ninety-nine) Enter your answer to the nearest dolor without the dollar sign de $1.23 would be 1. If the answer is exactly halfway, round up, le $1.50 would be 2). If the answer cannot be calculated answer -999 fie negative nine hundred ninety nine) Regardless of your answers) above, now assume that Ivy Incorporated is willing and able to immediately accept BOTH projects Project Initial Investment NPV Discount Rate IRR Payback A $200 $232 10% 30% 6 years B $3,000 $654 10% 16% 4 years What is the combined IRR of this decision? If the answer cannot be calculated, answer -999 de negative nine hundred ninety-nine) Enter your answer in decimal form to three places be. 1.23% would be 0.012. / the answer is exactly halfway, round up so 3.45% would be 0.035). If the answer cannot be calculated, answer -999 be, negative nine hundred ninety-nine) Question 7 10 pts Regardless of your answer(s) above, now assume that it was discovered that the Ivy does not have enough cash to take project B. Project Initial Investment NPV Discount Rate IRR Payback $200 $232 10% 30% 6 years B $3,000 $654 10% 16% 4 years They will need to borrow the money with a 4 year amortizing loan with an interest rate of 9%. When the analysis is redone, what will the IRR of Project B be? Enter your answer in decimal form to three places (ie. 1.23% would be 0.012. If the answer is exactly halfway, round up so 3.45% would be 0.035). If the answer cannot be calculated, answer -999 (i.e. negative nine hundred ninety-nine)