Question: Use the data in Table 1 to answer the remaining questions. 28The Internal Rate of Return of project A is A) Greater than 15% C)
Use the data in Table 1 to answer the remaining questions. 28The Internal Rate of Return of project A is A) Greater than 15% C) Positive but less than 15% D) Less than zero E) None of the above B) Exactly 1996 Table 1. CF's of Projects A and B Year Project A Project B -60 40 -60 29. The Internal Rate of Return of project B is A) Greater than 15% C)Positive but less than 15% D) Less than zero E) None of the above 50 B) Exactly 15% 40 40 25. Calculate the Net Present Value (NPV) of project A if the cost of capital is 15-percent A) 6.412 B) 5.787 C)4.108 D) 2.841 E) 1.083 30. Calculate the Modified Internal Rate of Return of project A using a cost of capital of 15%. A) 15.7-percent B) 17.6-percent C) 18.2-percent D) 194-percent E) 20.5-percent 26. Calculate the NPV of project B if the cost of capital is 15-percent. A) 6.412 B) 5.787 C) 4.108 D) 2.841 E) 1.083 27. Suppose projects A and B are independent and the cost of capital is 15-percent. Which projects are acceptable based on the Net Present Value (NPV) criteria? A) Project A B) Project B C) Both A and B D) Neither project is acceptable
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
